I am finding more charts that look good on the long side, although most would benefit from a low volume pullback. Here is the my watchlist, all long: TNH, APWR, PXP, PDO, MTL, DO, SMH, AG, ZEUS, CLS, RRC, RIO, CNQ, FCX, AUY, TBSI, EXM, GPOR, XEC, CCJ, CHL, CRS, BEAV, WAG, ATI, PCP, APA, WW, EGLE, MPEL, RAH, ADCT, EGY, RIG, ENER. While the watchlist is dominated by long picks, I am not fully in the bullish camp yet.
Yesterday's end of day selloff created some long upper wicks on candlestick charts, generally a bearish indicator. Let's take at the SPY chart as an example:
The selling was also on heavy volume, which should raise caution levels. On the other hand, buyers were resilient throughout the day, and after the Fed meeting, before they got spooked near the close. Asian markets had a very good day, and European stocks are up as of this post. If we get a decent GDP number this morning, perhaps we can build on the positive momentum. Ideally, I would like to see a low volume pullback to the 90.00 area on the SPY chart, followed by some bottoming action.
