The NYSE McClellan Oscillator briefly touched grossly oversold (>80,<-80) territory intra-day on Thursday, but got a big bounce on Friday after a great jobs report. We finished the week still in bearish territory, but think we will see a push above the 0 line next week. The market dipped down below it's 100 day simple moving average, but held all important trendlines & appears like a normal correction at this point. We are not necessarily out of the woods yet on the downside, but in my opinion we are headed higher. Onto the stocks I'm watching this week.
Wellpoint Inc. is in the healthcare sector, which has been one of the best performing sectors in 2014. After almost touching it's 50 day simple moving average last Thursday, it gapped up and held on Friday gaining almost 3.5%. I watching $WLP Monday for a break of Friday's high around $122.50. My stop will be placed right below the low on Thursday at $116.75.
Signet Jewelers Limited has been acting well in 2014. $SIG also tested it's 50 simple moving average, but bounced off of it beautifully. I like it above Friday's high with an entry at $117; stop will be placed right below the 50 day simple moving average at $110.75. I'm looking for an eventual breakout to new all time highs at $119.25.
AbbVie Inc. was spun off from Abbot Laboratories a little over a year ago. $ABBV also briefly touched its 50 day simple moving average and bounced off of it convincingly with good volume. I like this above $58.78, with a stop placed below the 50 day at $55.61. I'm looking for an eventual breakout above $60.
JP Morgan Chase & Company has been building a base around the $60 dollar range. It fell on news that they had some of their online accounts hacked last week. The overall market was also under a lot of pressure, which had a lot to do with most of the selling recently. $JPM found some footing on Friday and then some; closing up 2.48%. The stock looks like it wants to test the $61.50ish range again in the near term. I like it above $60.38, with a stop placed at $58.50.
Mercury General Corporation is a major insurance company. $MCY tried to push through it's 50 day simple moving average on Friday, but failed and formed a nasty shooting star candle. Shooting stars are great bearish reversal candles in my opinion, especially at the end of an uptrend or if another factor is present (failure to capture it's 50 day simple moving average in this instance). I will sell this if it breaks below $49.55, with a stop above Friday's high around $50.50. I couldn't just leave you with all bullish setups for the week :).
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Disclaimer : This is not an investment advisory, and should not be used to make investment decisions. Information in NC Investor Blog is often opinionated and should be considered for informational purposes only. No stock exchange anywhere has approved or disapproved of the information contained herein. There is no express or implied solicitation to buy or sell securities. The charts provided here are not meant for investment purposes and only serve as technical examples. Don't consider buying or selling any stock without conducting your own due diligence.
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