Divergence Watchlist 02/12/18

The S&P 500 has touched the 200ema for the first time since November 2016.  It looks like it is stabilizing along the channel line.  My guess is that we will have some consolidation as we continue to work along the lower channel line.   Overall, I’m confident in our trades going forward and am sticking to mostly long positions.  All we can do is continue to trade what the market gives us.

SPX 021118

There was not a public watchlist posted last week, but members of the email list and chat room received a few new setups.  The setups are below and SFIX and ARRS are still active.

Facebook (FB) – Divergence at the breakdown point of a rising wedge (Short)

StitchFix (SFIX) – Divergence at the breakout point of a falling wedge (Long)

Arris International (ARRS) – Divergence on the trend line support of a symmetrical triangle (Long)

Divergence Watchlist 02/12/18: MDCO, RYAM, SAVE

MDCO 021018
The Medicines Company (MDCO) – Stochastic Divergence Using Multiple Time Frames
Buy: 32.00, Target: 33.00 – 34.00 (3.13% – 6.25%)




Rayonier Advanced Materials (RYAM) – Coiled Stochastic Divergence Back Test into Support
Buy: 18.25, Target: 18.77 – 19.62 (2.85% – 7.51%)

Spirit Airline (SAVE)Stochastic Divergence / Falling Wedge
Buy: 40.40, Target: 42.00 – 44.60 (3.96% – 10.40%)

A few more…

WEN 021118
Wendy’s (WEN) has a divergence on the back test of channel line support.

Freeport-McMoRan (FCX) back test of support with stochastic divergence on the daily

Lumentium (LITE) – let this serve as an example of the power of stochastic divergences. This is a textbook breakout of a falling wedge and we missed it. Last week, the S&P 500 index fell over 5% and LITE finished the week up almost 30%. Talk about a missed opportunity…

And, More…

I like ATRA (long over 42)

Keeping a close eye on NLSN (aggressive coiling stochastic) for an upcoming opportunity.

From the watchlist on 1/29/18, FRPT has been coiling since the setup was posted.  It has held up well the last few weeks and is showing overall strength.  It may continue sideways for several trading sessions, but when it makes a move, it is going to move aggressively.

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Trading involves substantial risk of loss and is not suitable for all investors. Past performance is not indicative of future results. Opinions, market data, and recommendations are subject to change at any time. It is important to do your own research and analysis before entering a trade. Any trade you make is at your own risk.