Market breadth continues to strengthen and the longer term Primary reading is close to flipping bullish which would be a positive and suggest to me this move has more legs to come.
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| MM Past Month |
Another positive I noted at the end of the week is the inclusion of the Russell which until recently had been deteriorating the most. Continued improvement in this ratio bodes well for over all market health.
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| RUT_SPX |
However, on a shorter term time frame the market is slightly extended here and a rest would not be out of the question as the % of NYSE stocks above the 20 period average is 78.
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| %Stocks > 20 |
Another sign of improved market health on my time frame is the number of stocks setting up as well. One of the problems however has been a lack of follow through from break outs or rather muted ensuing moves. Hopefully this will improve, but if not tactical adjustments to holding period or expected move will have to be adjusted. Some set-ups ready to trigger or in need of a few more days rest:
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| AFOP |
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| FORM |
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| HNT |
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| HZNP |
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| JWN |
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| PTRY |
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| QIWI |
In addition to set ups I'm interested in, many of the high flyers that were taken to the woodshed appear to be bottoming out. Many of these stocks have been clipped 50% and could be clipped 50% more, but now that the exuberance in the IPO market over the past year has waned and many of these stocks become heavily shorted or will fall into a stage of neglect, they are setting up well for a catalyst such as earnings.
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| DATA |
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| TWTR |
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| VEEV |
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| VJET |
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