This week looks similar to last week in that the market is overbought but there remains the possibility of further upside, which is likely to be untidy.
The way to trade in these conditions is to protect profits early with our EDGE trade plan.
Also, as more stocks report earnings, it's sensible to focus on post-earnings setups and avoid pre-earnings trades.
Here are four stocks to keep on your radar this week:
ADBE (Bearish) - A weak looking stock that should get weaker if the overbought market shows signs of weakening.
LULU (Bullish) - OVI has been muted since reporting earnings in August but is now looking persistently positive. A move above $300 could be explosive in the short term.
MNST (Bullish) - Likely to settle around the 200-dma with several bullish Big Money Footprints in evidence, and further upside to follow in the following weeks.
TPX (Bearish) - Despite overall market strength, this stock has been underperforming but appears to have found support at $50. A market pullback from overbought levels could potentially trigger a significant drop in its price.
Remember, we only trade confirmed breakouts and always manage our trades with the E.D.G.E trade plan. This watchlist does not constitute financial advice or trade recommendations.
Disclaimer: Results may not be typical and may vary from person to person. Making money trading stocks takes time, dedication, and hard work. There are inherent risks involved with investing in the stock market and options trading, including the loss of your investment. Past performance in the market is not indicative of future results. This is neither a solicitation nor an offer to buy/sell stocks or options. No representation is being made that any account will or is likely to achieve profits or losses similar to those discussed in this training, video or website. All trades, patterns, charts, systems, etc, discussed in this training, video or website and the product materials are for illustrative purposes only not to be construed as specific advisory recommendations. Any investment is at your own risk.