Picks for Tuesday, July 16: $CAT, $LULU, $FLSR

So today I am just going to take a look at 3 potential plays.  1 brackett, 1 long and 1 15min rule.  So let’s begin!

$CAT:  First off, let me thank #Tradesmartu.com for pointing out this trade.  It looks like we could go in either direction with this stock.  On the bullish side, we need a close above today’s wick as well as a close above the 200 SMA.  Target is 90.60.  Stop is TBD.  On the short side, I like a close below 84.85 and a target of 81.48.  Stop is TBD.CAT_JULY_16_2013

$LULU:  I got burned on this stock a few weeks ago, but it’s looking like a good play is setting up.  There are some long term trend lines, the 200 SMA and recent wicks I’d like to close above.  In addition, there is an ascending triangle forming which I outlined in pink.  I like a close above 66.85 with a target of 70.40.  Stop is TBD.    Notice there is a short trade as well.  That was from a few weeks ago, but it may be valid depending on how LULU behaves.  For now, I am looking at the bullish trade.LULU_JULY_16_2013

$FSLR:  Here is the 15min trade.  It looks like we just had a nice pop on increasing volume. I think FLSR is a strong play with a target of 56.30.  My stop is 48.56.  This trade has an excellent R/R if it plays out as expected.  I think I will leg into this trade with one contract and get a couple more if the trend continues.  FSLR_JULY_16_2013

That about does it.  Best of luck with all your trades.

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4 thoughts on “Picks for Tuesday, July 16: $CAT, $LULU, $FLSR

  1. CAT – like this long, may reach 92…could be double bottom, if you look hard enough, haha
    LULU – still bearish on this stock, strong resistance at 66.20, could fall back to 60
    FSLR – really like this stock to get back to 56…strong momentum

    Mark, hope its okay that I comment on your picks, if not please let me know, but this is helpful for me as well…I am not an expert by any means, so I will not be offended

    I posted my call and put orders for tomorrow on stock twits…again my entry is the high for calls and lows for puts for previous day

    thanks

    Jose

    • Jose,

      I honestly look forward to your comments. It’s great to have someone to kind of critique what I do. I put a lot of effort into it, so for someone to take the time to look at it and provide comments means a lot. As I mentioned, I’m going to check out your stocktwits post and see what you’re looking at for tomorrow. Best of luck!

      -Mark

  2. $FSLR has bearish divergence on the RSI. Starting at the huge white candle in early-April, the stock continued higher, while the RSI kept forming lower highs. I personally wouldn’t bet on it reaching the next target before rolling over because the close above $49.91 isn’t a “strong” close above it. If it does roll over, which stochs are just barely starting to do, then there could be a descending triangle forming.

    • Thomas,

      Thanks for your analysis on FLSR. I can definitely see the bearish divergence and I agree today’s candle wasn’t overly strong. However, RSI just made a new higher high compared to the one from 6/10. I may still try a 15min rule but keep my stop tight. We’ll see what tomorrow brings. Thanks again!

      -Mark

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