Here are the wave counts on four stocks reporting tomorrow before market open.
While no confirmed local top is in place yet, Whirlpool Corp. (WHR), which has risen more than 50% off its January low, is really in need of a corrective retrace. So the stock is not something I would hold long into its earnings release.
AK Steel Holding Corporation (AKS) has completed a potential 5 waves up off the Jan low.
Here are the wave counts on three stocks reporting in the morning.
The Sherwin-Williams Company (SHW) is at the top of its rising channel. Even if one wanted to count more bullishly than an ending diagonal for wave (5) on the chart, you still ONLY have 3 waves up (of near equal size) into earnings, which are huge warnings signs, and possibly setting up for a 4th wave down.
Some have said that when I discuss an alternative count, that is usually the point in time when the market has pushed the primary count far enough and it then confirms. Well, this past week, the market pushed our primary bearish count in the USO to the point that I began to “consider” that the lows have been seen in the complex. But, it has still not invalidated that count.
News that Saudi Arabia and Russia agreed to a production freeze sent the market, and oil stocks in particular, running yesterday. Here are four charts to watch.
Celator Pharmaceuticals, Inc. (CPXX), one of our swing trades, is acting great. On Tuesday, it was up 82 cents to 13.21, or 6.6%, on 2.7 million shares. Ever since the huge breakaway gap it has be running up in a channel.
At the start of 2016, as the markets were heading down to the 1800’s, I was warning that a major bottoming in assets and markets across the world may be setting up. And, with today’s invalidation of the bearish pattern in silver, with the potential invalidation of the USO possibly about to be seen, we are seeing more signs of this potential.
Meanwhile, the SPX continues in its wave iv.
Last night my focus was on how the technicals are no longer working as they used to due to the actions by our Fed Governor, Ms. Yellen. On Friday we had a black candle off an up trend that basically guarantees the next day will gap down. It did a gap up instead. It closed red but barely so. Technical analysis DID NOT work. Yesterday we had that second gap up that not only failed but closed red and on the lows. Two bad fades back to back.
Here are four stocks we're watching today with details on their wave counts.
Veeva Systems Inc. (VEEV) looks great for downside follow-through as long as it stays under recent highs near 26.34. It should start dropping hard soon, with the wave down pointing to below 19.
Newmont Mining Corporation (NEM) is looking very strong.
If I had to pick one market to watch extremely closely in the upcoming days, then it is the DXY (Dollar Index), which is on the cusp of a major directional move that will have significant impact on the direction of other financial markets.
The DXY continues to press on major intermediate-term supoprt at 92.40 to 92.60, which if penetrated will lock in a 14-month top formation that will trigger downside projections into the 86.