Of course, at the time of this writing, markets all over the world are waiting in earnest for the “most important FED statement ever”. Don’t fret though for once we get through this statement, the next one will replace it in order of importance.
No one knows what the market’s reaction will be but it is important to be prepared to take advantage of the next major trading move, bullish or bearish, ever mindful that a large majority of individual stocks will move in sympathy with the major stock market indices.
We have a solid watch list of stocks based on” pre-trigger” price action, ready to take advantage of either scenario. Once triggered, there is no guarantee of profit; that’s why we set individual trading targets and use stops (risk discipline).
The following are some examples, both bullish and bearish, from a watch list of several dozen stocks that I am following.
First, let’s take a look at a few bearish ones which are exhibiting trend reversals. The price pattern is the same for each. 1) A breakdown at previous support along with a broken uptrend. 2) The formation of a downtrend. 3) A retracement to previous support which has now become resistance. The trading “trigger” would be further weakness back to previous support levels. click charts to enlarge
Express Scripts (ESRX)
Darden Restaurants (DRI)
Valero (VLO)
Celgene (CELG)
Disney (DIS)
Second, let’s take a look at a few bullish ones exhibiting trend continuations.
continue reading to see 5 stocks with bearish setups…
