Signs of distribution on many leading sectors are all over. A narrow set of stock holding well. Risk is currently elevated. However this market has resisted selling number of times.
MASI NSP CPE HIFR BONA XENT OLN OXM GOGO MVNR HAS GTN SWHC JMEI BLDR NFLX
Are some of the stocks today on my watchlist.
What to look for in good anticipation setup
- series of narrow range days in pullback/consolidation
- orderly pullback with no 4% b/d during the pullback or consolidation
- low volume pullback
- low volatility during pullback
- linear first leg if looking as continuation setup
- Stock should go up smoothly and not in volatile manner
- 3 to 10 days consolidation/pullback
- not up 3 days in a row
SWHC, NFLX are looking very good. They both had a gap up earnings breakout few days ago on high volume. Since then they have pulled back on low volume with series of narrow range days.