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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This new year in the markers has been a slow one, a lot of failed breakouts and consolidation. There is nothing inherently wrong with this by any means, it is the markers way of correcting via time as it is rare (not impossible) for the stock market to straight up. More than likely, like we saw all of 2013, the markets move higher, consolidate and then move higher again in a methodical, technical way. I do believe this is exactly what we are seeing this past couple weeks. The week before the new the indices broke out and ran higher, the past couple they have pulled back and begun to form a new base to breakout from, creating just another ‘chink’ in the armour. For more reading on the benefits of pullbacks I would recommend reading the following two articles that I wrote in the past. Enjoy –
To view the above listed articles, simply click on the orange colored font to be linked to the article.
Before we get into the post I would like to ask everyone who is reading ans viewing this page to send me a quick Tweet or Email (Via Contact Page) describing something about this post that you think could be better or you would like to see added. This does not have to be a lot, just a sentence or two. I am doing this tell others learn as well as teach myself and therefore I want to make it the best I can. I am open to ALL suggestions.
Also, on another side note; earlier this weeK I started a new page on my site title ‘Quick Trading Notes & Advice’, I highly recommend stopping by and checking it out. It has a lot of good content in there regarding trading.
Review Of Last Week’s Set Ups (Click to enlarge charts)
Last Week’s Post – A new Year Does Not Presage Change
$ATVI – So far a very lack of momentum stock. This time last week it looked really well after Friday’s close and still looks pretty good but just not seeing follow through. For a swing trade, be in there, but if your timeframe is shorter there is no reason to be sitting through this chop. No position.
$BYD – Great set up last week and amazing performance. Looks good for a swing and a tactical (short term) trade. Wouldn’t buy now. No position.
$DECK – Another one that did pretty well this past week during a choppy market, a breakout and then a retest and finally a run. No position.
$IBKR – Well, this one was one of the worst ones of the week. A horrible breakout failure and correction. I did have a position in this coming into the week but sold on Monday, cut losers, run winners.
$KCG – This is one of the most frustrating things for a trade, a breakout and then it comes all the way back. I do not like this set ups all that much anymore but it is still trending higher and looks fine from an intermediate point of view.
$STAR – This set up was not listed on last week’s Bank On IT post though it was listed on the one before (I think) and definitely on Twitter. It has broken out nicely from this bull flag pattern and looks to be in a grinding higher mode. I do not have a position in this now, though I would have liked. Too late to chase now though.
$WBMD – Without a doubt the best winner this YEAR. Up over 17% in 5 days, this one is a BEAST. I still am holding half for a swing in this stock from last Friday.
$WSM – This one looked really good all up until Thursday when it that gap-down happened. I am not sure what happened there but if I were in this stock, that action would have gotten me out. Needs to re set up now.
Now, here is the upcoming week analysis. As I scan through the charts I am not seeing TONS of great looking set ups. As a result of this, I am going to include two extra charts in this week’s Bank On IT post. Below is a chart of $CORN and then of $GDX (Gold Miners). Both of these two markets have been in horrible bear markets the past couple years and now are showing SMALL signs of trying to put in a bottom.
$CORN – As seen above has been in a bad downtrend for a long time. On Friday however it put in a good looking reversal candle with very strong volume. While it is not enough to call a bottom yet, I think this is a good sign of selling exhaustion. On watch.
$GDX – Everyone, it seems like, has been trying to call a bottom in this stock or in this market rather. It just simply has not come yet. However, recently it has carved out a decent size base and now is above the 21 ema on a daily basis. As long as this level holds, the squeeze likely is on and we can swing it versus Friday’s lows. No position yet.
Next, here is the Week Ahead video going over some of the set ups and thoughts I have for this upcoming week.
Finally, last, but not least – The set ups for the upcoming week.
$AME – A decent looking upper level bull flag. Could use some more basing but if you wanted a swing versus 51.50, this would be a fine entry.
$ATHN – Posted a chart on this one on StockTwits Friday, looks good and very tight. No position now and likely won’t because it trades pretty sloppily.
$ENDP – A nice upper level small bull flag. After breaking out of a long consolidation earlier last week it has held higher and looks like to be ready to run again.
$ORI – A pretty big base, one of the larger ones I saw on the scans this week but still it looks a tad choppy. Looks fine for a swing trade though versus 16.89 but I doubt you will get a clean intraday move from this one.
$TSO – No bias on which way this one will break, it could be something like $IBKR and fail and come back in or it can be something that EXPLODES higher. Simply on watch as the pattern is tight.
$UTHR – After a nice gap up, this stock has consolidated well and for a swing trade I think it looks pretty good versus Thursday’s lows. Perhaps it needs more basing but overall, a nice bullish set up.
$VCLK – We have listed a couple long set ups in this one since bottoming out late last year and with Friday’s strength it could be on the run for another move higher. Overall, looks good but could use some basing before breaking out again.
Have a great rest of the weekend. See ya here next week (maybe, I will be out of town so I am not sure when the post, if it will, get done).