The S&P 500 index has extended its gains to six days out of the last seven sessions. In spite of a huge bounce off its lows the market posted a big loss for August. It was an ugly month but short-term the stock market is actually overbought.
I am concerned that stocks could see a sell-off on the jobs data this coming Friday morning. We are reluctant to add new bullish positions with stocks overbought and reluctant to open bearish positions with the market still climbing.
Here is a list of some of the stocks on our radar screen.
ANF - several retailers will report their August same-store sales data tomorrow. ANF might see a sell-off back to support near $60.00. Nimble traders could try and buy a dip or a bounce from the $60 area.
PSMT - shares are surging to new highs. I would not chase it here. Broken resistance at $62 and at $60 should both offer new support. Wait for a pull back.
TUP - the stock has broken out past resistance near $65.00 and its 50-dma. Technically could be used as a new bullish entry point. Readers may want to wait for a dip back toward its short-term trendline of higher lows.
KO - Coca-Cola has been showing relative strength. Money managers probably consider it a "safe haven" trade as a liquid, big cap name. Today's gain is a close over resistance at $70.00 and a new ten-year high. My biggest concern with KO is that it moves relatively slowly.
WLT - This coal stock can be a very volatile equity. Shares just failed at resistance near $85.00. Readers could wait for a close over $85.00 as a new bullish position.
ENR - Energizer is consolidating under resistance at $77.00. Readers could wait for a breakout past $77.00 or $77.50 as a new bullish entry point.
SINA - this is a volatile Chinese Internet stock that just hit new four-week highs. Nimble traders may want to consider buying calls on a dip or a bounce from the $100-95 area.