This Stock Watchlist is just part of Robert Knight's daily commentary on stock indices and market trends. The evening before each NYSE trading day, subscribers to TurboTrading's Day Trader or Swing Trader memberships receive the Stocks to Watch list. This valuable insight is just one of of the membership benefits at TurboTrading.
April 5, 2021
SPY: SPY closed at new ATH and just 1 point short of the HOD. This is a major break out for market with a major Dow Theory buy signal. Even though the index is trading at new highs, there is a lot of catching up to do by the general market after the sharp sell of at the end of February/early March. SPY is in a strong rising channel. Short term targets are 4080 and 4100. The long term channel top comes in around 4300 as a target. In my opinion, it is not the time to be shy, but the time to buy.
NDX: The NDX is lagging the SPY. the DOW and DJ-Transportation. But near the apex of a wedge pattern it gapped up through resistance at 13300 and closed 13329. The index formed a V bottom, right hand extension pattern (bullish). Both the 20 day and 50 day moving average look to be turning up. Chart remains in a strong rising channel. Targets for NDX 13900 and then 14250.
DOW: At the end of March the DPW spiked off of support at 32000 and traded up to to ATH 32259. It is flagging the last 3 days. The SPY, the DOW and the DJ Transportation have all made new ATHs confirming a strong Dow Theory buy signal. Look for DOW to trade to 33500.
DJ Transportation: The Trannies also traded to new ATHs last week after tagging our 14000 and 14500 targets. It is now flagging with the DOW. It is at the top of the longer term channel. But if we draw an accelerated channel line look for Trannies to trade to 15000 and 15250. The chart is very bullish.
IWM: The Russell 2000 ETF remains in strong rising channel. It triple bottomed at $207and bounced off the rising channel line. The 20 day m.a. remains above the 50. It needs to get through $230. If it fails there it could be setting up for a head and shoulders pattern. Over $230 and $235 it should trade to $250 and $260.
FAS: The financial sector ETF has made a V bottom right hand extension pattern. It had a big bullish engulfing bar on Thursday holding the $90 support. Look for FAS to trade to $100 and $110.
LABU: The biotech ETF remains very bearish. It popped for two days after being oversold but looks like a dead cat bounce. It got up to the declining tops line and failed with a spinning top candle (candle of indecision). It is in a strong down trending channel and this bounce could be the 4th wave of a 5 wave down trending pattern. If it is, LABU could trade down to the $50 range. For now, avoiding the sector unless we see a AAA set up pattern. If it trades through $90 then the story may change.
SMH: The semiconductor ETF remains in a strong rising channel. It made a V bottom right hand extension pattern and gapped up through lateral resistance. The 20 day m.a. never crossed the 50 and both are heading up now. Support $247. Targets $270.
GUSH: Oil remains over $60/bbl and strong mid and small cap market is propelling the GUSH ETF higher. At the apex of a wedge pattern it popped to the upside surging 10.7% on Thursday. It held lateral support and moved off the rising channel line. It is a very bullish pattern. Look for GUSH to trade back to $100 and $110.
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