Winner Winner Chicken Dinner

With app stocks on fire I've been digging for great setups.  Check out this EGAN.  They are a highly rated customer service app company.  On their recent earnings conference call they noted their backlog doubled Y/Y.  Check out the weekly chart.

The stock is thin and impulsive.  If the market correction is over, this stock is going to keep ripping hard.  Very few people know this stock or the good story behind it and it's in a hell of a strong group.

It might be a good idea to use a smaller position size until we are clear this will break out.  There will be plenty of room to add as we look for a measured move to nearly 15.

Stocktwits @a_jackson
Twiiter @a_jackson8

Quick look at Google

We have a wedge in a leading stock!  This pattern tends to lead to trend continuation.  Note the relative strength is actually increasing.  However, if this breaks lower and below the 50D SMA at 860 we have another signal to stay clear of stocks in the short term.  

FLIR: a new long idea

This stock is in the very hot aerospace and defense group.  It also has a created a heck of a nearly two year bottoming pattern targeting much higher prices.  Let's take a look.

Note price edging up against the neckline on today's huge breakaway gap.  If a price breakout were to occur over ~27.50, it would likely be accompanied by a relative strength breakout and a bullish MACD cross.

One more reason I'm interested is a possible 4-5 year double pattern where last July's low undercut the 2009 low.  Of course it's too early to tell, but this can be a multi-year performer allowing us long term tax advantages.

Head and shoulders sending leaders to their knees and toes?

Update: 7/14/13 

Both C and BAC came just short of reaching their measured move targets before reversing higher.  That's a bullish hint towards the strength of the markets.  

GILD came nowhere close to it's measurement of 41 stopped at 47..  I can't adequately state the significance of this action!  It is already back to the May highs, but the V nature of the rally suggests we are should at least pause here.    

Z has rejected it's potential top.  We can now expect it to aggressively approach it's upside measured move of 70.  

These are all bullish signs out of high quality stocks.  It's just more confirmation of the strength of this market.



Yeah, I used a nursery rhyme, it's been a looong day; lol.

Z - has been a big time mover this last year or so.  There is this potential 3+ month top setting up that would measure to 33.  That might seem scary for longs given we are at 53.  Also note we haven't come close to the 70 upside target, but it's not like this has completely broken down.  If it does, it suggests there may be a company specific problem as the internet group in general looks strong.  Perhaps it's just going down because of declining real estate prices?    

C - this has a 1 month pattern.  The volume pattern suggests this is for real, but the longer term trend doesn't seem at risk.

BAC - very interesting action here as it tries to actually form a higher low.  If it plays out, again we see there isn't much long term damage projected.

GILD - this top is a bit larger but we have to remember the incredible move this stock has had.  This could lead to an attractive buying opportunity.

  

This chart spells misery for bulls.

This chart is a smoothed version of the NYSE Arms index.  What is bothersome is we had a small rally off the lows and this has already flashed a bearish warning signal.  When the market has had recent similarly sized pullbacks in the uptrend, this indicator has spiked to a buying zone.  We can derive that, in fact, this time IS different.  Also note how much this indicator is hanging in a the bearish zone.  More on TRIN.