On the Custom Crossover Screen NFLX looks really good, all 3 indicators fired long signals, we have the first move up and the typical first pull back toward the 10-day moving average, usually a good place to buy. I'm not thrilled with the 3C charts right now, but I will watch them for improvement. As of now, I suspect the pullback may be a bit deeper, but longer term, something good seems to be going on with NFLX, I just am not convinced on the timing of an entry yet.
The long term underlying action looks like NFLX built a base between November and January. When the short term charts start showing a more positive character, it will likely be a decent low risk/high probability long trade.
MU I was looking at late last night and I hoped it wouldn't pop off yet, but it has made a move, however it is still worth keeping on your radar as the move this a.m. has been very parabolic and through a resistance level so the chances of an intraday pullback or a pullback in the coming days are high enough to keep it on the watch list.
Here's the base and breakout today, it seems to be a large ascending triangle type base, the yellow arrow represents resistance that has been broken (now support).
Here's the custom X-over screen and the pullback to the 10-day m.a. as is typical. The red trendline is one potential stop area if you can pick up MU on a pull back; I prefer not to chase.
Here's the long term Trend Channel (day) which has held the uptrend and ADX which is still supportive of the trend. Note that coincidentally the stop on the Trend Channel, which will move higher, is in the same area as the stop above I suggested as a potential stop.
This positive short term divergence is what is missing from NFLX, this is what we look for on the pullback, accumulation for the next leg higher.
For now I would treat MU as a Swig Trade, unlike NFLX, the longer term chart has to prove itself and start moving higher.
MRVL Like the others, all of these stocks are from my Russell 2000 top performers for 2012, they were put on a watchlist and I was waiting for pullbacks in each, however, I consider them to be counter trend to the underlying primary trend, which as you know I feel is bearish, so stops on all of these trades should limit risk or you can use wider stops with smaller position sizes. While many of the price only charts look great, the underlying 3C charts look ok, not great, yet these are the early 2012 top performers in the R2k, just a word of caution.
MRVL seems to have put in a triangle bottom, this is a 2-day chart so it is a little bigger then it appears, it has also broken out and pulled back.
Here's the X-over screen, you can see the pullback here was deeper to the 22 day moving average.
Here's the short term accumulation on the pullback.
And the long term 60 min chart showing the original base accumulation and it is still in confirmation and slightly leading positive. Holding this beyond a swing trade, I would want to see this and other 3C charts improve.
For a tight stop, the lows of today would be my choice on a closing basis, there's no reason for a break out to pullback any further then this. If you choose a wider stop to accommodate market volatility, then I would buy less shares and under no circumstances would I hold this long below $13.75.
ATML
The daily chart, a triangle like base and breakout. While ATML is up a bit this a.m., there may be a pullback, otherwise another entry point may be at the green trend line which would be a breakout from the next resistance zone. The red trend line is what I would consider a tight stop. If ATML is making its next Swing leg higher, there should be no reason for it to pull back any further.
Here's the recent X-over signals, so it is a rather new long signal.
The daily Trend Channel coincidentally has approximately the same stop as what I marked above, I would stick with that stop.
The hourly chart doesn't look bad, it appears to have accumulated during the consolidation area which it has broken out of.
The 5 min chart shows some accumulation recently on the pullback.
The very short term 2 min chart shows a little leading negative divergence, this could cause a consolidation or a pull back, I would consider this as a long on a pull back. You can always email me to see what things look like upon that happening.
More Coming...
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