Markets closed down around 1% for on the week after paring all gains and then some on Friday. Volume has yet to come in one way or the other, but both the Nasdaq and the S&P are consolidating above their 21-day exponential moving averages, a positive sign for bulls.

Another positive sign is the decoupling that occurred over the course of the week, accentuated on Friday as the markets were down 2% and many stocks were green. Tesla dragged the averages down as it lost nearly 10%.

Energy remains the sector with relative strength and tightening setups with little overhead supply. Tonight I’ll cover updates on our stocks from last week and several in energy that are setting up for good risk/reward scenarios. Let’s get into it!

Index Update

The Nasdaq is now above a rising 21EMA and the net highs/lows will remain neutral until there are 3 days straight in either direction.

The Nasdaq is still holding its 21EMA despite a choppy week. Friday traded on the smallest volume in 50 days as signified by the gray bar, potentially signaling seller exhaustion. As long as this index holds this support, I’ll be looking to long stocks.

The S&P-500 also is holding above it’s 21EMA and traded an inside-day on low volume on Friday. Look for it to hold this level and break above the Friday’s high to continue up towards the 50MA.

Stock Updates

BP Prudhoe (BPT) crossed through my $20 on high volume and is now nearly 7% higher. Stops to even.

CVR Energy (CVI) had flashed a nice volatility contraction pattern before crossing up through my buy point at $32.50 two weeks ago. Now it’s up 20%, where I’d take the majority profit and move stops to $34.

Advanced Micro Devices (AMD) broke above my $104.50 buy point from last issue and closed $2 higher Friday. Keep stops just below $100.

Ardmore Shipping Corp (ASC) crossed up through the point where I noted to consider buying at $7.78 but quickly sold off. Now I’d consider some above $8 as this is a relatively strong group.

Best Setups

The setups below are ideas, not outright buys; placing a trade is discretionary and depends on both the price action and volume. To succeed, you’ll need to make the trade your own based on your rules for entering and taking profits, and always use a stop-loss!

CNX Resources (CNX) is an oiler setting up a cup-with-handle pattern and has solid volume characteristics throughout. The buy point is a move through $23 on high volume with stops at $22.20.

Diamond Offshore Drilling (DO) failed the first pivot point at $8.26 but found support at it’s 21EMA and is setting up for another go. The buy point remains $8.26 with stops just below $8.

Rattler Midstream (RTLR) is another oil and gas stock that’s setting up a high tight flag, printing an inside-day on Friday. There’s a low-risk buy point at $17.55 with stops just below $17.

Antero Resources (AR) broke out from the descending trendline and followed through aggressively. Now it could be ready for more. The buy point is a breakout through $45.50 with stops just below $44.

Global Foundries (GFS) has been consolidating is looking to build up the right side of the base. Semiconductors have been performing relatively well and should continue to do so if the market floor remains. The early cheat buy point is $61 on volume with stops at $59.

That’s all for tonight! See you back here on Wednesday night for an update on our stocks.

Cheers,

Danny Deals