The market is at an inflection point, particularly on the SPY, where there is a notable area of resistance overhead as you can see in a recent group discussion post i did today. I'm not sure if we'll pullback here or not, but if we do, I don't foresee it being anything major and would likely just be enough to establish a new higher-low for the sake of technicalities on the charts.
But the trade is LULU sets up nicely because there is a well defined double bottom and has confirmed that pattern and consolidated nicely above the neckline as seen on the chart below. Also worth noting is the respectable reward-to-risk ratio that is 2:1 in our favor.
I am also still long CIG and a bit underwater on that trade right now (about -2%). If the stock hits 11.87, I'll be out of the trade without hesitation.
Ryan (@shareplanner) specializes in swing trading strategies and is the founder of SharePlanner which he created to help and teach others on how to trade stocks better using multiple approaches and time frames. Each day you can count on Ryan to provide his trading advice as well as transparency in every trade that he makes. Ryan Mallory resides in Central Florida. More >>
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