Jack Welch is the opposite of Jeff Bezos who doesn’t know how to spell quarterly earnings. Whe...
4 Shutdown-Defying Stocks
10/09/2013 7:00 am EST
Even though the stock market has finally taken notice of the government shutdown, Joey Fundora of DowntownTrader.com has still been able to find stocks with decent charts to trade.
After reviewing the market index charts, Monday, I didnâ€™t expect to find many potential longs. SPY closed near its lows and fell back under its 50-day moving average. And while IWM has been stronger, it also looks like it has room to pull back towards it 50-day moving average as well.
However, I did manage to find more than a few charts that escaped relatively unscathed.
Carters, Inc. (CRI), for instance, traded in a narrow range candle and formed an inside day. While the candle shows sellers were in control for the day, the overall pattern of consolidating above the prior base remains intact. Maybe CRI pulls back to test the base again, but overall it still looks pretty healthy to me.
CME Group (CME) is another one that still looks pretty good, too. It cleared a prior trendline and is now flagging in a tight consolidation. Iâ€™d be interested in this stock on any strength that clears this area.
Oâ€™Reilly Auto (ORLY) actually closed near its highs Monday, although it was slightly lower from the prior close. In essence, itâ€™s just another consolidation day as it continues to form a base. ORLY is probably pretty close to either attempting a breakout, or pulling back towards $121 again.
Another I will be watching pretty closely is Korn/Ferry International (KFY). Flags have been working in this market and KFY has shown very little weakness over the past month. Strength over $22 could lead to a nice breakout.
There is enough in this market to make me very cautious. I am seeing some stocks fail on their breakouts and some leaders like Amazon (AMZN) and Tesla (TSLA) have been looking a little tired. Of course, we have the government shutdown hanging over things as well, but seeing healthy charts keeps me optimistic that this can still be a stock pickerâ€™s market.
By Joey Fundora, Trader and Blogger, DowntownTrader.com
Related Articles on STOCKS
If new highs emerge, there has been no change in the game. Robots are still ruled by the old boss an...
Is the correction complete? Is it safe to start to seek bargains in the market? Don’t jump too...
There’s a 30% chance that the strong trend resumption will continue above January’s high...