SignalWatch – 5.2.17

Good afternoon folks. I hope this post finds you all well and I hope that y’all had profitable days in the market. The indexes made a comeback at the end of the day to close slightly higher for the day. The S&P closed up .01%, the Nasdaq .13% and the Dow .10%. It should be noted that all three of the indexes have active buy signals at the moment. The Dow is sporting a CPS5 Gaps signal, the S&P features at ACT EOD signal and the Nasdaq is rocking a Trending Reversal signal. So tonight, we are going to focus on three new buy signals to stay in line with the broad market’s bullish mode.

So let’s take a look. First up, Best Buy.

MS-16 is looking at the current pullback as a potential new higher low on BBY.

MS-16

So before you say, “whoa, brick and mortar numbers have been getting crushed” and “wasn’t BBY in serious trouble just recently?”, we are looking at a swing trading opportunity here. Not a buy and hold move. Swing trading is my favorite form of trading so this move is right down my alley. When you take swing trades, you are looking for a move to hit a specific target in a short amount of time. In this case, we are looking for this to move into the $53 zone before BBY reports earnings at the end of the month.

Since late March, BBY has been getting at it. It seemed to plateau in April only to break out once more towards the end of the month, which lead us to its current pullback. It is now forming a new higher low along support at $51.50. Volume is steady, but if we see a pop, that could be signaling the beginning of a new accumulation period. If we see the period commence, the buying frenzy could push price up into the $53 zone.

The strategy that fired this signal is our MS-16 strategy. This strategy looks for reversion moves by finding stocks that have outperformed the current market but are undergoing pullbacks. It also looks for stocks that are not going to be subject to any fundamental events, like earnings in the near future. MS-16 is one of our newest Advanced Strategies and if you’d like to know more about it, click here. Next up, Duke Energy.

MS-16 likes DUK for a bullish move as well.

MS-16

Another signal from MS-16? Yes! But this time, the strategy’s filters found a trading range that our move might break out of. As we can see, DUK has been bouncing around this range since March and is now bouncing off the bottom of the range and support close to $82. It should also be noted it is pivoting off of the 50 SMA as well. AND, the 50 SMA recently moved through the 200 SMA to the upside. These events give us even more bullish confirmation.  If MS-16 called this one correctly and we do see it pop up, we could see it make a move for the $84 zone.

And for our last signal of the day, we have Parker Hannifin.

The Intrinsic Trend Module is looking for a bullish pivot from PH.

IT Strong Trend

So, the story on PH goes something like this; it’s been cruising higher since the election, higher highs followed by higher lows galore, good amounts of volume all along the way, trading above the 200 and 50 SMA’s the majority of the way, and it has just looked downright healthy all the way up to the midway point of last month. Then boom! Face plant. Kind of. PH rebounded as the bulls swooped in to buy more shares and pushed the stock even higher. And what do we see happening now? Another large pullback. And like the last pullback, this one will be using the 50 SMA as the pivot point to form a spanking new higher low. And yes, it is oversold on the RSI indicator which puts it in the money zone for reversion entries.

As far as the strategy goes, the IT Strong Trend strategy is part of our wicked accurate Intrinsic Trend Trading Module. In the past few months, we’ve seen strong bullish moves across the market. These are clearly the sort of opportunities we dream of. The challenge is knowing when a trend is about to get underway and having the gumption to get in before it takes off.  This is exactly what the Intrinsic Trend Trading Module is made for. The ITM module identifies those stocks and ETFs that are in a trend following mode and brings ’em right to you in your focus list. The concept behind Intrinsic Trend is that by closely examining recent moves in the market, we can find early indications of an emerging trend and channels within those trends which price will likely move. The objective is to enter trades on pull-backs within the channel. Not too shabby. If you’d like to know more, check out ITM’s literature here.

That’s it for tonight. We’ll see you back here tomorrow. Have a wonderful evening!

The products and demonstrations listed on this website are not recommendations to buy or sell, but rather guidelines to interpreting their respective analysis methods. This information should only be used by investors who are aware of the risks inherent in trading. Nirvana Systems shall have no liability for any investment decisions based on the use of their software, any trading strategies or any information provided through other services such as seminars, webinars, or content included in the SignalWatch website.