Monday's Game Plan

SPY: On friday closed off on friday almost exactly where it left off. Volume was low and the day was choppy. XLF closed strong and XLK closed slightly weak but its still holding under resistance. XLK has been holding the market up recently with XLF being rather weak, if XLF decides to join the party then we could be set for an up move. If the market fails to go up though the level that ill be watching is the 113 level in the SPY. Another important observation was that XLE and OIH were the strongest on friday indicating that money was going into that sector.


Longs:

BHI: Closed strong in fridays weak market. The stock and its sector OIH demonstrated relative strength on Friday. If the market permits, BHI is a strong stock to be considered long.

VZ: An A long that has formed a bullish flag on the daily with room to go.

UNH: Another strong stock on the daily that has formed a bullish flag that is an A long

COST: Has been very strong and is forming a daily flag on the hourly. This stock alot of room to the upside.

TXN: 27.50 is the level , it tested and failed to breach it on friday. It then recollected itself and closed above the lows indicating that the 27.50 could be tested and taken out again.

BBY: A long with room to the upside.


Shorts:

USB: Obviously below its 50 and 200 DMA's and is forming a bearish flag on the daily. Depending on market conditions and R/R an entry in USB short is good as long as markets decline.

PRU: A sell short with room to go to the downside. Stock formed a 1-2-3 top on the hourly and that only demonstrates the stocks weakness.If XLF declines this stock should be one of the first stocks to fall. As the volume was also pretty high on its last two down days.


Breakouts:

DAL: > 12 as its entire sector the FAA is about to breakout of its range since April.

AU: > 47.50 as that level would act as a launching pad for this stock to the upside.

ABX> 47.50 ascending triangle on the daily.

BAC < 13.10 would make this stock an A sell short.

TWC> 54.85

COP> 58 is the level with an IPT 58.40.It may be worthwhile to wait for 58.40 to be taken out first.

SUN> 36.90 is the line in the sand here for SUN. IPT being 38.