Careful Now

//Careful Now

Hawk’s Scan Sentry Report July 2

Here in the States we are approaching our big Independence Day holiday. A lot of American  traders are likely to be on vacation at this time. As a consequence I would expect the volume on the U.S. equities markets to be a bit light this week making it easier to move the price one way or the other.  This could present the ideal opportunity for the market powerhouses to attempt to move the market in a direction opposite their longer term expectations… a ‘head fake’ if you will. You may even see the significant moves this week happen during the Asian or European sessions. Looking at the current daily chart of the S&P futures contract, our indicators are slightly more bullish than bearish with the Triple Trender, Radar1 Fear/Greed and Radar2 Price Leader all pointing up; but none of them are screaming any trade signals right now. Furthermore, the contract closed Friday at resistance making upward movement a little more difficult to accomplish and the Radar3 Trend Strength is not confirming the bullish Triple Trender. This may be a good week to protect the fruits of our labors up to this point and stand aside until clearer signals show themselves.

Nonetheless, I have created a watch-list of potential opportunities both long and short from our Scan Sentry Toolkit Scanners for your perusal. I am using relative industry strength to filter some of the selections this week to better hedge my bets in an ambivalent looking market. Let’s take a look at some of the specific equities that are on my watch-list for this week and why they are there. If you have any questions about the indicators on these charts please follow this link to a legend describing these tools.

_____Longs_____

BUD

(Here a nice breakout to new highs confirmed by stronger Radar1 Fear/Greed, and recently synchronized Triple Trender and Radar3 Trend Strength ).

FMX

(Another breakout to new highs, this one accompanied by a Pullback 23 signal after retesting the breakout price).

BZH

(Following a nice bullish pivot divergence we see a bullish Triple Trender and now bullish Radar3 Trend Strength. Since we are currently at resistance, look for Radar 1 Fear/Greed to cross above the purple alert line for confirmation. )

_____Shorts_____

AET

( One of the very few stocks that actually went down during Friday’s rally. This one broke below the up trendline and synchronized the Triple Trender bearishly).

LKQ

(After a nice bearish pivot divergence we see a breakdown from the up trendline and the Triple Trender now bearish, and Radar3 Trend Strength almost posting negative numbers. This one may need to finish filling the gap around $34.00  before continuing down ).

May the trend be with you,

Hawk

Jan Arps’ Traders’ Toolbox is not an investment advisory service nor a registered investment advisor or broker-dealer and does not purport to tell or suggest which securities customers should buy or sell for themselves. Examples presented on this site are for educational purposes only.  It should not be assumed that the methods, techniques, or indicators presented in these examples will be profitable or that they will not result in losses. There is a high degree of risk in trading.  Readers using this information are solely responsible for their actions and trade at their own risk. Readers should always check with their licensed financial advisor .

2018-01-08T07:46:25+00:00July 2nd, 2012|Hawk's Picks|