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Today my scans produced an enormous amount of set-ups, a majority from the energy sector.  The gap up this morning is going to make the energy plays tricky; I'm not a fan of chasing gaps.Contraction leads to expansion, my ideal swing set-up is a stock that had an up move, traded sideways for 10-20 days; it starts to get tighter, and then expands.  Expansion after contraction from a comes from stocks near 52-week highs, 52-week lows, above and under the 200-day and 50-day moving average.  BTE and FEYE are good examples. The goal is to get involve in the first [...]

Below are the stocks on my watchlist for today.  These swing set-ups become actionable to me if and only if they go through the previous day's high plus a few cents.  That simple rule will and should narrow down the list significantly. The stop-loss for most of these set-ups is either yesterday's low or a 3-day low.  What we are looking for is to jump aboard of a possible new 3-5 day move on the stock.In certain market environments mean reversion works better than you typical cookie cutter breakout, this is why it's important to trade more than one set [...]

Below are the stocks on my watchlist for today.  These swing set-ups become actionable to me if and only if they go through the previous day's high plus a few cents.  That simple rule will and should narrow down the list significantly. The stop-loss for most of these set-ups is either yesterday's low or a 3-day low.  What we are looking for is to jump aboard of a possible new 3-5 day move on the stock, NFLX and WDAY are two recent examples.My opinion and outlook are subject to change as new information comes in. Frank Zorrilla, Registered Advisor In New [...]

Tahoe Resources explores, develops, and operates mines in the Americas.  The Company primarily produces copper, gold, silver, lead/zinc, and natural gas and petroleum.  Very simply, Tahoe is part of the hottest sector so far this year which is the Juniors Gold Mining Sector (GDXJ).I'm always intrigued by huge bases from stocks that are trading near their 52-week low.  Normally a prolonged period of contraction leads to a prolonged period of expansion.  Tahoe Resources traded between $7.45 to $9.85 for about 9 months, it broke $9.85 to the upside and immediately tacked on a 16% gain in 2 days.  Since then [...]

Below are a few breadth charts that I'm keeping a close eye on that can potentially be actionable in the short term if price confirms it. The first step would be a lower low in the $SPY on the 30-minute chart ($203.98).Here you have the Russell 2000 vs. the 5-day moving average of the net number of 1-month highs minus 1-month lows.Russell 2000 vs., stocks above their 20-day moving average.SP-500 vs. the average SP-500 stock above their 3,5, and 10-day moving average.The above charts all show a small slow down in the participation of individual names versus the SP-500 and [...]

Depending on how you look at it, the 1st quarter was the most eventful and uneventful quarter in a while. The SP-500 lost -12.7% in the first 12 trading days.  Sentiment was dreadful; RBC Dain advised their clients to sell everything, Soc Gen--"75% decline isn't that crazy," George Soros hinted that it could be 2008 all over again.  On cue, the SP-500 rallied 7% in a few days just to lose -7% a week later that put the SP-500 down -12.8% by 2/11/16.  On 2/12, we embarked in another V-rally in which the market grinded higher for 25 days virtually [...]

There has been a lot of talk about the market climbing a wall of worry, every sentiment indicator, for the most part, has spent a bulk of the time in bearish territory.  This is normally considered a bullish contrarian indicator, however, it has mattered the most near the lows, never near the highs.  Market participants have become a pessimistic bunch, over the last 18-months they have been predominantly bearish near highs and near lows.  The Bulls, the Bears, and the ones that are neutral have all been right in the last 18-months.Net net, we've been running in place with pockets [...]

Below are the stocks on my watchlist for today.  These swing set-ups become actionable to me if and only if they go through the previous day's high.  The stop-loss for most of these set-ups is Friday's low.Frank Zorrilla, Registered Advisor In New York. If you need a second opinion, suggestions, and or feedback in regards to the market feel free to reach me at fzorrilla@zorcapital.com or 646-480-7463.Work With MeStay Informed  

Earlier this week in our Market Preview, we highlighted a few important points; potential (possible) overhead resistance, positive March FOMC performance, the positive performance for the SPY when an FOMC meeting falls on the same week as options expiration, and the V-rally day count.So far the week is slightly positive, the FOMC is out of the way, and the open gap from the beginning of the year is filled as of this morning in the pre-market.We mentioned in our last post that the previous V-rallies have lasted about 26 days each, we are on day 24. You couple that with [...]

You don't have to be a Chartered Market Technician to see that we are looking at some potential--possible overhead resistance. Seeing where we've come from in such a short period ($182ish-202.76), one can understand why a short-term speculator probably wouldn't push the envelope here. The SP500 closed above its 200-day moving average on Friday for the first time this year.  The most widely accepted definition of whether or not the market is in a bull phase or bear phase is whether or not it is trading above or below the 200-day moving average.  Some trend followers use the 10-month moving [...]