Tuesday, May 26, 2015

My Weekly Watch List: $CI $UTHR $HZNP $DXJ

What History Can Teach Us
The SPY is +2% so far this month and we still have 4 more sessions left on the calendar.  Surprisingly, May 2014 showed similar performance. Historically over the last 50 years, the month of May barely hits +0.16%. Looking over the charts this weekend, I pinpointed an interesting behavior.  The last time the market traded in a very tight range for 2 weeks in a row with low volume was in late February.  Not long after, it rolled over into a mild correction of -3%. This time around, the market has traded in a very tight range for the last 6 sessions in low volume as well so I'm keeping a close eye on things this week.

Are Institutions On Board?
Most people like to check out early ahead of the long Memorial Day weekend and senior traders are no different. Volume on all 3 major indexes - $SPY, $QQQ, $DJX - was considerably lower last week compared to the prior week. The market hovered around the major resistance lines last week as well. Institutions have been piling money into growth stocks that trade less than $100 Million daily for the last 4 weeks, which concerns me. This does concern me because thin stocks are usually a no-np for them. 


A Peek At My Watch List

Recently, the health care sector (XLV) has shown some strength. That is the sector I have been looking for growth stocks this week.  Here are 3 stocks that made it through my filters.  
$CI
$HZNP
$UTHR

Japan’s market has performed over 18% year to date, so if you're into ETF's, it's worth looking closer. One of the ETF's that I'm looking at is:

$DXJ

That's a Wrap!
 

This is a rough time of year if you're involved in markets and/or if you leave in a Hurricane zone like me!  I often look at options strategies to lower my risks even further. I also take a smaller position than usual at times like this. This week I would like to see some volume with my positions. That's my confirmation that institutions are behind my picks.

Happy Trading!

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