US stock futures are up around six handles Monday morning as the
market looks to close out its sixth straight positive month. After
an impressive five-day bounce off the 50-day moving average, the
(INDEXSP:.INX) rested on Thursday and Friday, which is healthy. On
Friday, we saw the market shrug off a weak GDP reading, that also
included very weak expectations for GDP growth next quarter as the
sequester cuts come to roost. Combine that with a weak jobs report
last month and the economic picture right now is not pretty, but
the market doesn't seem to care. We have rate decisions from the
ECB and Federal Reserve this week, and those are the parties that
seem to be driving the bullish price action in equities.
The bounce back in gold (NYSEARCA:GLD) is perhaps a reflection of
further expectations for world central planning. Japan's
quantitative easing measures are well publicized, and the US
Federal Reserve maintains its steady bond buying program. The ECB
is expected to perhaps step up its level of aggression as
inflation, despite fears, remains below targeted expectations. GLD
is up another 1% this morning ahead of those ECB and Fed meetings
After a five-day win streak, the S&P took a break on Friday
with a small loss of 0.18% but held above the outlined key support
level of 1575. It's important to see how the index holds on to its
recent gains this week. The longer it holds above 1565-1575, the
higher possibility we could see a retest of the current all-time
) had a nice bounce off its 21-day moving average on April 18 when
it put in a bottoming tail, flashing a buy signal. After that the
stock saw a nice breakout on April 24 after earnings, which was
followed by a bullish gap on April 25, which added some power to
its recent rally. The longer it holds above the earnings gap and
prior breakout level, the greater odds we could see higher prices.
WYNN is the first casino to report, so its strong earnings numbers
showed us some positive signs in this group.
Las Vegas Sands
) broke out of the year-long wedge pattern it has been in since
April 2012 on high volume on Thursday. The stock took a break on
Friday as it put in in inside-day candle to digest to breakout
move. LVS has reclaimed the support of all key moving averages, and
the longer it stays above $56-56.15, the higher changes we could
see some follow-through to the upside.
) also ignited a breakout above the macro down trend since February
2012 on Thursday with above-average volume. The stock took a break
on Friday, and it has some strong support at $13 level. As long as
it holds above this support area, bullish momentum seems to remain
), after finding some support at $12 and consolidating at this
level for three sessions, saw a nice rally last week with a pro gap
on Tuesday that added some fuel. The stock has pared most of the
losses from the pullback since March 19 and got above all key
moving averages. A pullback into its key 8-and 21-day moving
averages, which line up with some support at 15ish, could present
another buying opportunity.
Airlines stocks have some strong set-ups right now as a few look
ready for potential breakouts. On Friday, airline shares rose
slightly after Congress passed a bill that would let the Federal
Aviation Administration keep all of its air traffic controllers
Delta Air Lines
) held its uptrend that started in December on the recent pullback,
then saw an igniting bar on April 23 with a solid earnings report.
The stock is currently flagging above its key moving averages,
foreshadowing a potential move higher. A move through $17 with some
volume could trigger another round of buying in DAL.
(LUV) has a good-looking chart as it has been grinding higher above
its 8- and 21-day moving average. Recently it saw a controlled
pullback and bounced off its 21-day moving average. LUV is reaching
some resistance from the prior pivot high at this point, and a
break above $13.57 would marks the next breakout.
(UAL) has been in an uptrend since December 2012. It found strong
support at the 50-day moving average on the last pullback, and
currently is consolidating around its 8- and 21-day moving
averages. A break above $32 could bring in some buyers. After that
we have an additional buying opportunity at $32.95.
(LCC) has had a more methodical move to the upside with a
longer-term uptrend that has been in place since November 2011.
Every pullback has provided us some buying opportunities. The stock
recently found support along its 50-day moving average and is
consolidating around its 8- and 21-day moving averages. A break
above $16.74 would mark the next breakout that could send the stock
back to retest the current 52-week high at $17.43.
(GOOG) saw a nice rally on April 19 after beating its earnings
estimate. It is now putting in a beautiful bull flag and on Friday
put in a bottoming tail at its 21-day moving average. Keep this
leading stock on your radar and use Friday's low of $796.58 as your
new point of reference.
(AMZN) missed its earnings on Thursday after the close and saw some
wild action. On Friday, the stock dropped more than 7% to trade at
the $252 level. This is a strong support level, below this we have
the 200-day moving average coming in at $251.40. If AMZN doesn't
hold these support levels, we could see more damage done on the
(VMW) has been trading in a downtrend since March 15 when it got
rejected at the 100-day moving average, and has lost the support
off all key moving averages. It came down to retest the
intermediate support of $70.30 multiple times. The stock is a short
candidate for this week as a break and close below this level could
mean more traction to the downside for VMW.