Many of you know what this post is about, the Week Ahead. In the past this post has been all about preparing you for the week ahead, thus the title was naturally should be ‘The Week Ahead’. However, I want to hold a more unique presence on the internet, therefore I have decided to rename this post to Banking On It, a play off my last name ‘Banks’. Everything about this post will remain the same, the video and the charts and educational analysis that goes along with it, simply just a slightly different name.

The purpose of the Bank On It post is to prepare you for the upcoming week in the markets. I do this not only to help others learn and develop trading skills but also to develop and cultivate my personal thoughts for the Bank On It. Below you will find a written commentary portion followed by a Video Analysis the stock market and the set ups I am watching this upcoming week. This post is organized into sections, see bold titles and skip the items in which you are not interested in! Enjoy!

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With the new year many people create resolutions and when it comes to the markets,  a lot to people seem to think a new year is starting ‘fresh’. Well technically, not really. Trends do not automatically reverse with the introduction of a new year, they are still present and just as prevalent as they were the year before. Something to remember and consider before making an market maneuvers based on the date on the calendar.

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Review Of Last Week’s Set Ups 

This is the first week of the review of my Top Set Ups section of my Bank On It post. This section of the Bank On It post is designed for you be able to, in hindsight, understand why I chose the stocks I did and how consequently how they performed. Every week there will be a new handful of stocks that I will highlight as ‘Top Set Ups’, which simply means they are at the top of my watchlist. 

1-5-13 rvbd

RVBD – The best of the set ups from the past week, nice break out and there is no reason not to still be in this stock from a swing perspective.

1-5-14 gpor

 

GPOR – One of the worst performers of the group this week, started out strong breaking out on Tuesday and then giving it all back the rest of the week. This is why you take half on the breakout and then leave half as a trailer.

 

1-5-14 iaci

IACI – Decent one this past week and the set up is still valid. Looks like a nice bull flag.

1-5-14 mdvn

MDVN – This one was the worst of all of them, never breaking out or giving any sort of entry confirmation. You should have been stopped out of this one under Friday’s lows if you were in this.

1-5-14 vno

XEC – Started out OK this week and the taper off, does not look great for next week either. Another lack-luster performance with little momentum. Seems to be a pattern this past week.

1-5-14 xec

 

This past week the set ups pretty much all failed to confirm and breakout, it happens sometimes. Luckily there was never a point in the week in which I had a position in one of these stocks, because they never triggered and my slant towards the market was becoming slightly more cautious as we become more extended (not a time to add/buy). However, with the market pulling in this past week, perhaps a little more momentum will come back next week if we have bottomed out or put in a good pivot on Friday.

Look at $SPY Next Week 

$SPY this past week, as seen below, topped out on New Years eve and then gapped lower on Jan. 2nd, thus trapping all the ‘late’ longs. So far this does not mean a whole lot because of the power of the candle relative to the overall trend is just about zero, meaning that in context this past week is just apart of the trend and the larger picture is still fine. Perhaps we seen some more consolidation next week above the prior breakout, this would be the most healthy thing from a bullish perspective.

1-5-14 spy

 

Top Set For The Next Week 

I am providing you with my top set ups for the week ahead, the most actionable set ups on my watchlist. I will not be providing all of my watchlist like I have done in the past, simply just a handful that I feel like are of the highest quality. I will also be updating these top set ups on the next edition of Bank On It. 

1-5-14 wsm

WSM – A nice set up here, especially on the weekly charts. WSM has shown relative strength as of late and is holding higher in a bull-flag like pattern. Looks good above Friday’s highs with a stop loss below 58.00 for a swing.

1-5-14 wbmd

WBMD – I really like this set up (I am long some FYI). Nice bull-flag on the right side of it’s base, looks good above Friday’s highs with a stop loss below 38.50.

1-5-14 kcg

 

KCG – A financial related name and with finnies being ‘hot’ lately, perhaps this is the next one to go. It has been stair stepping higher for the past couple months and recently put in another bull flag. Looks good over 12.10 with a stop loss below 11.60 (a lot of risk, trade accordingly).

1-5-14 byd

BYD – With casinos seeing a lot of inflows the past few months, perhaps they go after a laggard now. BYD looks to be setting up in a lower level consolidation base, over 1.55 it looks to break out, with a stop loss below 11.25.

1-5-14 atvi

ATVI – This set up is one of the best I have seen, love this bull flag above a long-term consolidation. Looks really nice over Friday’s highs with a stop loss below 17.62.

1-5-13 vno 2

VNO – I know, this was on last week’s Bank On It Post too, but the set up is still very much valid. Looks good over 91.25 with a stop loss below 87.00, again this one will require a lot more risk and thus the timeframe for this trade is weeks and months rather than days.  Keep that in mind.

1-5-13 deck

 

DECK – A nice set up here in an upper level consolidation. Looks very nice above Friday’s highs with a stop loss below 83.00. 1-5-14 ibkr

IBKR – Extremely tight bollinger bands, looks very nice over Friday’s highs with a stop loss below Friday’s lows (or 24.00 depending on risk parameters you like). I am long a little for the anticipated breakout.

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That’s it for this week’s Bank On It post. Hope to see you back here next week as we review these stocks and have more on watch! Let me know if you have any questions/comments.

 

The Week Ahead A New Year Does Not Presage Change