Hawk’s Scan Sentry Report April 2
When I want to look at the American equities markets in general, I look at the E-Mini futures contract as a reference (I also like to day trade it on occasion). This week I noticed a few interesting things from my technical analysis indicators. First, note the consistently decreasing buying pressure over the last few months (indicated by the Radar1 Fear/Greed indicator) as the price has been rising. This is a strong signal that the rally is losing stem. We even saw it dip into the bearish side of the zero line this week for the first time since last November. Could this be a prelude to the old axiom “Sell in May and Walk Away”? Well, it’s not May yet! Note the bullish Pullback 23 signal indicating a likely continuation to the upside, and all three Trenders of the Triple Trender are still bullish. As noted last week, it is time to be very careful with our swing trades, but I don’t think it’s time to abandon ship yet. As this rally continues to play itself out I will look for opportunities to sell out of my bullish swing positions (I have not been bearish since late last year). I have already been stopped out of a couple of positions, but I believe that there is still a bit more upside to this rally for short term trades. I am still bullish on my longer term (years) investments as well.
Below are a few individual stocks from this week’s watch list and a little explanation of the technical analysis indicated on the charts. If you want further explanation of any of the indicators on the charts below you can find a ‘legend’ at this link.
(This is a basic breakout of congestion on increasing buying pressure after a nice pullback into the Triple Trender. Radars 1,2 and 3 are all getting stronger .)
(Another breakout from congestion, this one accompanied by a TE1 signal and a Pullback 23. Radar1 Fear/Greed shows quite a bit of accumulation in the consolidation period preceding the breakout. )
(This one just filled a gap which was a key support level and in the process created a bullish pullback divergence in Radar1 Fear/Greed and a bullish Pivot Divergence in Radar2 Price Leader. These are accompanied by a Pullback 23 signal. )
(I like the pullback into the Triple Trender and the subsequent Pullback 23 signal. Also note the diminished buying enthusiasm indicated by Radar1 Fear/Greed at the recent highs. )
(Radars 1,2 and 3 all just turned bearish as did the Triple Trender. There hasn’t been much buying in the last stages of this rally!)
(Radar 3 Trend Strength just turned bearish to synchronize with the Triple Trender. Radar1 Fear/Greed is indicating increasing selling pressure on this stock.)
May the trend be with you,
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