A few days ago, I had to go to the Stanford Shopping Center to visit the Apple genius bar (one of my household's many Macs was having a complex network issue). The Apple store at Stanford is one of their "mini" stores, much smaller than the typical Apple outlet, and it was, as usual, packed shoulder-to-shoulder with people. It was bustling.
When I was done being geniused, I left the store and noticed, just two doors down, a new store I had never seen in my life. It was the Microsoft store. It was absolutely gorgeous. It was easily ten times the size of the Apple store, and it was packed with fantastic-looking displays and kiosks, largely featuring Windows 8 and the Microsoft Surface. It also had a dozen fresh-faced young people in Microsoft t-shirts, eager to help customers.
Which, by the way, is precisely what was missing.
The entire dozen fresh faces were staring forlornly out into the open air of the mall. I recognize Palo Alto is enemy territory for Microsoft, but still………..it was shockingly barren, particularly considering just fifty feet away was the Apple store that could barely squeeze another soul inside.
I guess the company's recent performance echos this reality.
I'm finally starting to pick up some more exposure to the long side in my trading. I came in to the day just long on Array Biopharma (ARRY), but have since added Signet Jewelers (SIG) and just now added Edwards Life Sciences (EW) at $91.01 as you'll see below.
EW has a nice setup to take as the risk is fairly tight and is bull flagging at its recent highs, while consolidating just above resistance - did you get that? If not, the chart shows it a bit clearer. Oh yeah, then you have a triple bottom in place. There's a lot to like about this one.
On the short side, Hologic (HOLX) which we've recently shorted successfully in the past on a similar setup is testing overhead resistance on the downturn as well as a great deal of resistance after being in a sustained downtrend after confirming the head and shoulders pattern a couple of months ago.
Ok enough babbling… the charts will make it look a lot more clearer.
Here's today's lazy trades long and short setups.
Long: Edwards Life Sciences (EW)
Short: Hologic (HOLX)
Be sure to check out more of Ryan's swing trading setups at SharePlanner.com
I have to say that yesterday was one of the strangest trading days that I have seen in a while. EURUSD and CL broke down very hard in the morning, TLT made new short term highs and filled a big gap, and equities traded sideways to up, delivering clear bullish short term trendline breaks in the afternoon. Yesterday was a very bad day for intermarket correlations and while I am leaning long today, the risk of downside failure looks unusually high.
Both of the ES and SPX declining channels broke up yesterday, and that should indicate towards at least a retest of the recent highs. It's important to remember that we still have falling wedge and IHS targets in the 1433/4 area and we may see a push up to make those targets. Here's the setup on the SPX 15min chart: