Stocks to Watch Sampler April 26, 2021
Which stocks should you be watching when the markets open on April 26, 2021? TurboTrading's Robert Knight shares his ideas in his "Stocks to Watch" article the night before each NYSE trading day. Every Sunday evening, Mr. Knight offers half of his Stocks Watchlist as a resource and sample. TurboTrading members receive a link to the entire Stocks to Watch list via email each evening before a trading day. Interested in the full report? Take a free TurboTrading 1-Week Trial to get a taste, or become a paid TurboTrading Member to get the Stocks to Watch List. Keep reading for the free sample:
April 26, 2021
SPY: SPY made an intraday all time high on Friday. It closed up .97% on the day after profit taking just before the close and ahead of the weekend. Key support for the index is 4115/20 area. We started to get broader participation in the market keeping the index strong. The SPY has moved around 12% from the early March low. We are in the middle of earnings season and earnings remain strong. So, as a worse case, I see the index trading sideways in here consolidating its big move. But don't be surprised if earnings keep propelling the index higher. 4200 is the next target then 4250.
NDX: After making a V bottom right hand extension pattern in March, the index traded to new ATH. The NDX made a big reversal on Friday trading up 1.3% on the day. Key support around 13880 and 13720. This could be the start of the 5th leg up. It has made a reverse head and shoulders pattern ,broken out and now flagging. The chart is very bullish. If it gets through ATH look for it to trade to 14250 and 14500. Longer term I would look for 15500.
DOW: The DOW is at the top of the intermediate channel and was choppy the last 4 days. Minor support around 33700 the 33255. It is in a strong rising channel. Targets 34500 and 35000.
DJ-Transportation: Trannies trade to new ATH on Friday closing at 15133, up 1.42%. The indices is also hitting ATHs and continues to broadcast strong buy signals for the overall market. The Trannies remain in a strong rising channel. Look for continuation to 15500 as the momentum is strong.
IWM: The IWM is in a large basing pattern. It did hold support off the rising channel line and is just a couple points short of trading through key resistance at $226.70. Next area for it is ATH at $234.50. The ETF remains in a strong rising channel and the 20 day m.a. never crossed the 50. I would expect IWM to trade over the $227 on Monday. Targets are $245 and $260.
FAS: The FAS made a new 52 week high on Friday trading to $103.o6 and closing at $102.01. After lagging last year, the ETF has nearly doubled now from our $53 entry level. Momentum is very strong for the financial sector and look for it to lead markets higher. They remain in a strong rising channel and bounced off the rising bottom channel line. Targets for FAS are $110 and $115 on the short term.
LABU: We put a swing trade on LABU on Thursday as it broke out of a declining channel. There is strength coming back into the mid cap and small cap markets and biotechs should participate in the move. Key support around $62.50. Look for LABU to trade to $85 and $95 on the short term.
SMH: After making a V bottom right hand extension pattern in March the semiconductor ETF surged back to ATHs. It double topped there and pulled back. It did hold support at $242. It remains in a strong rising channel. The ETF was up 2.21% on Friday. Look for continuation back to ATH at $258.60. Targets for SMH are $275 and $290.
GUSH: The oil stocks remain in a down trending channel now even though the price of oil and transportation remain strong. For now the chart is bearish. Support $54 and $50. It needs to break out of the down trending channel before it becomes of interest to us.
NUGT: The senior miners broke out of a down trending channel and we put a swing trade on the ETF. Key resistance around $71 for it. If it can get through that level look for $80 as the markets anticipate a resurgence in inflation (and sorely needed by the Fed).
Technical Indicators: The stocks above their 40 day m.a. (55.75%) and the McClellan Oscillator (32.25) remain neutral. Bias for the indices is bullish but we still do not have broad participation in the broader markets. We are neither over bought nor over sold. But, VIX remains bullish as it continues to drift lower under 20. Overall, markets remain bullish and should trade to new ATHs as we start to get broader participation in the small and mid cap stocks.
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