Watchlist for 1/26/15

January 26, 2015

On Friday's watchlist I declared that the bull market seems ready to resume. However, don't get overconfident. I didn't like the selloff on Friday's close. The break of the downtrend line on the SPY could just as easily be a fake-out rather than a breakout - a doubly bearish sign. To be more certain that we're headed higher, the SPY has to hold ~203-ish. If the market gets ugly Monday and drops below that level, you know what to do.

While I am still concerned about the elevated volatility we've seen in the VIX lately, I am seeing a lot of bullish setups on individual charts. This next few weeks could be good for swing trading on the long side. Most of the picks on this watchlist are going to be big picture, swing trade related.


DEPO - This is a solid bull flag. Will be good once it gets going again.


INFN - Possible breakaway gap.

RMD - Possible breakaway gap. This one reminds me a lot of BITA's 1yr chart just before BITA went parabolic to 90. If Friday's LOD holds this could easily run to 70.

Screen Shot 2015-01-25 at 11.11.07 PM

NEWR - Seems to have solid support at 30. I would take any r/g move and hold for 35+.

BOX - Insane IPO. Has potential for a multi-day run just like GPRO, LOCO, or any of those other really hyped ones.

EXPE - Looks like its coming out of a falling wedge-like pattern, although I'd call it more of a channel. Volume was good on Friday. But earnings on 2/5 may dampen any big moves.

VIPS - Lost track of this one, but I think it has much more upside left. Would use 20 as a stop, so only small size from where it's at here in the 23's.