All posts by hcpg

Base plus IBD


As per our weekly habit we go through the IBD list and MarketSmith’s Near Pivot scan to see what type of set-ups we can find; market grinding higher and we are finding less than last week but still some areas of interest. Let’s review:

PANW is in the hot hot Software sector and IBD #6 — sitting on top of the 20sma so if you want to swing it entry would be here with stop under that 20sma near 238 for very aggressive short term and under 230 horizontal support for intermediate.

ALXN IBD #25 sitting under 138 resistance — we’d like to see some strength before we jump on this one — add to watch-list!

We rarely trade gold these days but KL has been on a tear and is IBD #1 so it has our attention. We like buying commodities on dips rather than breakouts so keep an eye out for reversal near 32 — our way of buying reversal is to set alert at support and then see if buyers show up. Buy it after bounce starts (say 0.5-1%) with stop below the support that held.

So far picture perfect on SPY with hold on 50sma weekly as it digested SPY 280. Bulls can’t ask for more — intermediate line in sand is that 50sma line at 274 on closing basis.

Good market for hanging onto swings — we have AMD NVDA FSLR GDDY IQ partials on right now. Hold, trim, trail stops, and be patient in this type of positive forgiving tape. See you on streams.

IBD base set-ups


Market 4 days up in a row and needs a breather — we’re all about looking for new bases so let’s take a look at some IBD picks (that automatically pass through a lot of hoops by just being on the list). VEEV IBD #3 high base here in 122 zone — would love a quasi handle.

It will be especially interesting if these IBD picks set up in MarketSmith’s Near Pivot scan, one of our favorite duo combos. We like PANW IBD # 4 with 20sma holding — weekly looks good too.

MTCH #32 looks better on weekly than daily — has formed the handle and now needs to show strength — over 56 would do the trick.

LULU #19 in deep base, needs to show strength, over 150 would do trick.

ALXN #29 weekly has been stuck in this range for a long time. Over 138 would get our attention.

Market in day 4 of bounce from 50sma weekly and now chopping along near SPY 280 — all good but needs a breather. This is the time to do your homework and look for bases and add alerts. See you on the streams. HCPG

Waiting patiently


Market consolidating at 280 SPY is not a bad thing — especially if it can be a horizontal chop that digests through time instead of price. There are not that many good risk/reward swing set-ups for our type of trading right now but even a bit of basing could do wonders. What sector would we want to get into the most? The same sector we have been blogging about now for months. Software. Let’s take a look at five software stocks that also are in the IBD 50 and levels of interest.

FTNT, software cybersecurity, IBD #4, fantastic chart here. Working on a handle, 20sma near 82. Look for pullback/reversal or base and breakout on this one.

PANW IBD #7 and also in Software security space, massive cup here and begging for a handle. Any base here would set it up. Add to watch list!

PAYC coming in IBD #7 has already broken out on a gap up on strong earnings. We’d love a a pullback to near the breakout area (as seen on the MarketSmith pattern recognition points on chart) near 164

RP coming in IBD #19 came into our radar today on the buying on support. Entry would swing entry here with stop on today’s lows.


Trader favorite TEAM coming in IBD #2 already broken out and we’d love a re-test and reversal off 96 zone. Too much to ask? Maybe but alerts are free. Put it out there and see what types of fish your nets bring in.

We like this digestion near 280, as long as it does not accelerate past the mid 270s. Again just a bit of basing would do wonders for risk/reward entry levels. See you on the streams!

Over all SMAs, now what?


Market is finally over all major SMAs: #1 was the last stand on 200sma weekly which held like a champ, much better than we expected (we thought it would be messier). #2 was the basing on top of 100sma, #3 perfect rest on 20sma weekly and #4 a breakout of 50sma weekly (and of course 200sma daily). 280 is horizontal resistance: we would love a base above 50sma weekly (so hold 273) but under 280 to set up a fresh breakout. It would not behoove the bulls to attempt 280 breakout in overbought status.

Horizontal resistance for us trumps any SMA — 280 is pretty important.

Our readers will recognize the sweet spot trend below – look how SPY held the upper Dev 1 floor even on pullback days and managed to close on the line. Tape has given such a tough time to the bears thus far in 2019

From our favorite Near Pivot and IBD scans we found a few interesting charts. Note that last week we found many more setups than we did this week and any rest/digestion in the market right now would be welcome.

FIVE is IBD #10 and looking for new highs. Looking for new base in low 130s to get long.

MNST from the MarketSmith Near Pivot scan — great trend, continuation play here if you want for swing. Stops for short time frame would be 58 zone

TTD is IBD darling at #5 in the hot hot software sector: would love this to take a breath and set up here under this 160 breakout zone

WIX from Near Pivot: look at this cup! We are lovers of the handle on cups and will be watching this one closely to see if we can get some consolidation in the low 120s

Market has come a long way in a short time. Ideally we get a breather before trying to break out of 280 SPY. We don’t want to hit that level stretched. See you on the streams!

IBD and Near Pivot Delight


We found a ton of set-ups this week on our own scans and scans we have set up thru MarketSmith. One of our favorite scans is one we created to combine IBD 50 with MarketSmith pattern recognition Near Pivot scan. Let’s take a look at a few of these: TTD #IBD 5 bounced on 20sma as buyers showed up on Friday exactly where they had to — if you want to swing entry would be here with stop on Friday low.

FIVE IBD #7 great base, looks set to go with breakout over 128

CDNS IBD #16 we highlighted on our stream at 46 breakout base. Currently at 51 — needs to base again for next phase.

LULU #18 buyers came in at 144 support. If you want to swing this entry here with stop on Thursday low (or if more aggressive then on 20sma near 146)

ADBE #50 we like how it is basing under 260. Software acts amazing and not letting up — note SHOP TWLO earnings this week.

Market at pivotal point: buyers showed up exactly where they had to on support last week and pushed it back into congestion zone. Next step of course would be push off into breakout territory. And on the other side if bears want to push they will want a close under Friday low. See you on the streams. HCPG