Futures are showing significant weakness heading into the open. The market will be sifting through a ton of reports this week, but today there is only the Chicago PMI report. I ran my screens last night and interestingly enough there were only 2 stocks for my long setups (combined) and only one that I felt I could throw out to you this morning. As for my short setups, I returned 220 short possibilities, in which I found 18 setups for.
There have been a lot of 100% and 200% gainers in market this year, which in a possible market pullback, these types of stocks looks prime for a huge sell-off, but I am going to stay away from these high-fliers for the most part until I see a serious break-down occurring in these types of chart plays. For the most part, I’m looking for those stocks that have struggled relative to the huge rally we have seen over the last couple of months in particular and since March in general.
Once again, don’t be surprised, even though the market is showing weakness early on (-62 on the Dow, -13 on the Nasdaq, and -7 on the S&P) if the bulls try to make another buying opportunity out of this. It’s when they try and fail that you know they are losing their edge. Overseas markets are all trading in the red, with the Asian markets seeing declines in the range of 1% – 2%.
Here are the Trade Setups:
Long Setups: ACTS
Short Setups: ABT, ATK, AMZN, ANEN, ABK, CPKI, CALM, CASY, CBS, CIR, BOOM, FRPT, GNCMA, GE, ID, NAT, RDNT, STRA