globlchrtanlysis' Blog : Trade Setups For Tuesday( UPS, WFMI, BCSI, LF, EW)

In last night’s report we mentioned we would like to see the market pullback and would then see how the market reacts. Since we didn’t have odds in our favor we didn’t want to trade just to be trading, we would rather sit back and let the big players get back in from vacation and follow the smart money.



First thing Monday morning we saw some nervousness spreading from Europe. Since we sold off so aggressively this allows us to wait and see if the market gives us a "tell" just like in poker. This tell would shown by seeing how market participants handle a steep selloff and whether bidders stepped in or not. Sure enough the bidders stepped in


Not only did the market rally most of the way back but more importantly the strongest stocks took off and posted solid gains for the day. Some even hit new highs. Another important thing to notice was the major indices broke major support at the 50 day moving averages but later bounced and held this level. This is very bullish action.

The only negative we saw was today’s rally was on light volume where we would have liked to see heavy volume on a day like today.

By the end of the day we received market confirmation which is showing us that odds favor a move higher. Our scans also picked up high probability long setups giving us further confirmation that odds favor higher prices over the short term.

NEW SETUPS

We are looking to buy the following stocks if they trade to the following prices or higher. We are looking for gains out of the gate but will give loose stops of 8-10% over the short term.

BCSI 27.28

WXCO 11.20

TOR 8.54

OCLR 9.86

EW 66.93

CTCM 23.01

ATPG 15.10

CI 37.07

AFL 52.47

AM 20.68

SLAB 43.43

WFMI 47.19

UPS 70.08

LF 5.72

AERL 9.04

JAZZ 16.95


Thanks,

www.globalchartanalysis.com