$URA blasted through the range high and 40-week MA on volume that was about 4x greater than the 10-week volume average, and closed near the highs of the week. The 10-week MA crossed above the 40-week MA as well, which signals that there is a bullish reversal of trend under way.
$ONVO has formed a tight “inside” candlestick on the weekly chart, which positions the stock for a rally to new highs. We already own this stock and a move above the two-week high should send the price action to new highs in short order.
We have one new buy setup today in $AWAY, which is structured much like yesterday’s buy in $IRBT. $AWAY has great potential, as it recently gapped up to new all-time highs on heavy volume. If it can clear the recent high, then it will be trading with no resistance above (just blue skies).
Although $ONVO had a rough go of it in November of last year, it has had plenty of time to work off that ugly selling as evidenced by the dry up in volume. $ONVO is a potential breakout on multiple time frames, as a move above the current base high would also lead to a breakout to new all-time highs.
On the stock side, we closed out of the remaining half position in $WDAY for a +22% gain. Our short position in emerging markets triggered on Tuesday with (inverted ETF) $EDZ clearing $46. The price action followed through nicely and on a pick up in volume. We’d like to add to the position on short-term weakness (see trade details inside)
Emerging Markets ETF ($EEM) has rallied into resistance from a broken uptrend line and a declining 50-day MA. Tuesday’s price action stalled above 39.70 for the second time in two weeks. There is also resistance from a prior swing low in mid-January at $40.
The weekly volume pattern looks very bullish since $IRBT reclaimed the 40-week MA (in orange) 10-weeks ago. Last week’s big volume breakout to new highs suggests that $IRBT is potentially ready to make a significant advance in 2015. We are looking for an entry on slight weakness to last week’s low.
$VNDA has formed a tight range after pushing through the 50-day MA on decent volume last week. The entry is over the two-day high, with a very tight stop, so it is basically a GONG setup. We use these type of stops when the stop below a swing low is just too far away for our liking.
Given the sharp rally off the lows in the market, a few days of consolidation would be welcomed here, as our scans have not produced much in the way of new buy entries the past few days. The market timing model remains in buy mode, and leadership stocks continue to hold up well.
$SCTY broke out ahead of earnings yesterday on big volume. We plan to hold through earnings with the current half position. On the stock side we could definitely use a few days of sideways action in the market to produce low risk entry points. There isn’t much to do in terms of new entries in core type setups, so we must be patient.