I was on vacation all of last week in the Isle of Palms & had very spotty wifi. I took one position in Diplomat Pharmacy, and well, it wasn't a good one. $DPLO hasn't yet hit my stop of $44.00, but I am behind on the position with an entry of $47.85. I guess this is more of a note to self to not trade without my entire "toolbox" or reliable internet service. I did catch the headlines & noticed we dropped for the majority of the week. In the short term we look lower, but am watching for oversold signals to buy the dip.
The McClellan Oscillator ended the week at -10.55, which is "no man's land" with a bias lower. I'm guessing we head lower in the beginning of the week & start to ascend on Tuesday/Wednesday dependent upon headlines. This sell off seems pretty orderly for now, but caution is always warranted. There are a few troublesome signs out there, like the Russell 2000 closing below it's 200 day moving average & the continued weakness in the Transports & Commodities. Onto the charts I'm eyeing Monday...
Bluebird Bio Inc. created a very large dragonfly doji candlestick on it's daily chart last Friday. This is a very unique candlestick pattern & was found at the bottom of a intermediate term downtrend for $BLUE. The daily chart shows RSI dipping into oversold territory & Stochastics look like they want to cross upwards. I like this above Friday's high of $157.50, with a stop placed at $153.50. Earnings were last Friday, so they are of no concern.
Lions Gate Entertainment had a major reversal on Friday due to an earnings beat. Caution is still warranted in $LGF since all indicators are still in bearish zones (RSI < 50, MACD & Stochastics still with bearish signals). Ideally I'm watching for a retest of the 50 day moving average at $36.92 and even a retest of the $36.00 level to get in. If this does not happen, I'm looking for a rise above $38.15 for an entry, with a stop placed at $35.34.
Silver Spring Networks, Inc. popped last week off of an earnings beat. The RSI is overbought on the daily chart, so I will be watching for a pullback to the 50 day moving average at $12.50. MACD & Stochastics are very bullish for $SSNI. Eventually after a little rest, I think this one can test all time new highs around $15.
Seagate Technology Holdings, Inc. looks to have put in a short term top just above $52. $STX is well below it's 200 day moving average & has been since early May. All indicators are pointed down & look bearish. I will be watching for a weak bounce to slightly above $50 to short, with a stop placed at $52.35 My first target will be a retest of it's recent low around $44.
Boeing, Co. is the world's largest manufacturer of airplanes. If you have been paying attention to the headlines, the transports have been under performing all year long. $BA established a lower high on the daily chart & has proceeded lower. Also, on the weekly chart, $BA had a bearish cross of the 30 week rising above the 10 week moving average. I'll be watching for a weak bounce to the $144 area to short, with a stop placed at $145.75.
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