Daily Setups – Wednesday, January 26th, 2022

Daily Setups

SSIH

The strength indexes continue to drop. The Fed moved the markets lower after the release, but the real problem is that so few groups are working, it is hard to post viable setups until we get a little buying support here. There was nothing particularly alarming after the Fed, but the real issue is that the market is struggling to hold here. I (Greg) added some positions this morning, and all of them moved below my buy point after the Fed Announcement, but not below my stop. It is always hard trading in a volatile period like this.

I  like to remind myself that now the Fed and the Options expiration are out of the way, which is helpful. We are heading into the month end support period. This rattle after the announcement today might actually create the lows that we can bounce off of.

The posts below are really to watch, not get ready to buy as the market is very vulnerable to another move of 5 % lower.  Where will buyers step in based on the value they can find? The price action so far this week has been wobbly at best. Protect capital!
Greg

Names to watch:

AAPL – Apple, Inc.

Apple was posted yesterday as well. This heavyweight continues to stabilize at this support / resistance line and the 100  period moving average. If this large tech name starts to fall further, it probably means the overall market is going to make another push lower to find buyers. 

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MSFT – Microsoft

Microsoft has swung wildly in the 24 hours. If it can hold here, it is worth looking at. Too early for an entry.

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APA – Apache

Apache retested a breakout of the November highs. The chart looks set to continue higher if the macro backdrop can improve.

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MDRX – Allscripts

MDRX broke out on big volume Tuesday. It may need a few days to consolidate the move. Look for support around $19.

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RTX – Raytheon

Raytheon is consolidating just below the highs. The defence group is one of the strongest groups right now. Another strong one in the group is LMT which made new highs today, but it has been straight up for a month. This one looks to be completing a consolidation before it makes the next leg higher.

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