Tuesday Evening Thread

Sector rotation continues. Today's trading was marked by weakness after the FOMC minutes. The only 3 sectors to finish in the green were: 1. PCLN. 2. AAPL. 3. XRT - retail.
XHB, yesterdays worst performing sector, finished flat today. The XRT is also is in a volatility squeeze.

Tuesday Afternoon Thread

DDD daily chart (11:45 EDT)

It's tough to see but volume is already well above the 50 day simple moving average and approaching yesterday's full session level.  It's a bona fide breakout.  I'll be looking to add, hopefully on a small pullback but I may have to chase.

Tuesday Morning Thread

Gator's Chart of the Day: CPB

One of the nice features of Telechart is multi-day charts.  This is a two day view of CPB.  Each bar represents two days of trading.  This view will "quiet" some really volatile stocks so that you can more easily discern a pattern.  If you're a gap trader be aware that it can hide those.

What I'm seeing here could be a cup with handle developing.  (Actually it's the second consecutive one.)   The last bar (red) is a good looking hammer as the bears tried to push it down but bulls powered it back up.  (On the one minute chart the last couple of bars were extremely tall and green.)  We had a mild winter so maybe the soup sales are more a function of cheaper meals at home and brown bag lunches than cold weather.

The trade: A starter position (1/4 or 1/3) could be purchased now, assuming a flat to slightly higher open, or if the stock bounces from the 200 period moving average.  That is 33.54 on this chart and it would also be my stop point if the stock moves up and then fails.  I would be quick to fill out the position on a move above 34.15.  That is the November high.