#$vg

The SP500 has pulled back 3.6% from its recent high; it was just a few days ago that the financial twitter stream was telling us that we were going to go straight up until year end.  Many reasons were given, no rate cut, money on the sidelines, managers underperforming that need to catch up, high short interest, seasonality etc...Now after this pullback it seems like everyone forgot all the positives that they were mentioning just a few days ago, they are still there. What we want to do now is perhaps take advantage of this natural retracement after the big move in October, to look for stocks that reacted well to their earnings report that have now pulled back because of the market.  By well I mean a stock that gapped up over 4% due to their report.  $VG, $MDR, $BLX, are some on my radar.

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5 Trade ideas excerpted from the detailed analysis and plan for premium subscribers

Anthem, Ticker: $ANTM

Anthem, $ANTM, has pulled back from a high over 170 over the last 3 months. The recent consolidation in a tight range sets up an opportunity for a trade. With the RSI moving back higher and the MACD crossing up it suggest to look for a break to the upside. But it could also break to the downside and provide a good trade. Let it tell you which direction to take.

Callon Petroleum, Ticker: $CPE

Callon Petroleum, $CPE, was on watch for a major break down two weeks ago. The 50 day SMA held as support though and it moved back higher. Last week it triggered an Inverse head and Shoulders as it moved back to resistance from April. The RSI is firmly in the bullish zone and the MACD is rising, both supporting further upside toward the Head and Shoulders price objective.

Edwards Lifesciences, Ticker: $EW

Edwards Lifesciences, $EW, is a large cap heart care company that had a strong run higher from may through mid July. from that point the stock started a pullback that has erased $25 and seems to be settling. What makes it interesting is the RSI turning lower with the MACD falling, and the strong support lower at 125.

Vonage Holdings, Ticker: $VG

Vonage Holdings, $VG, rose out of a consolidation that lasted 5 months at the end of July. The jump higher on strong volume quickly pulled back though. Now it has retraced 61.8% of the leg higher and is settling, keeping a gap open below, over the 50 day SMA. The RSI is trying to turn higher while the MACD slows its decline. Look for a move over 5.65 for a trade higher with a natural stop below.

Zillow Group, Ticker: $ZG

Zillow Group, $ZG, has been declining since mid February, but then found a bottom to start August. The bounce from there is now consolidating at resistance under the falling 100 day SMA, resembling an ascending triangle. The RSI is trending over the mid line while the MACD is rising. Watch for a break of resistance higher to enter.

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After reviewing over 1,000 charts, I have found some good setups for the week. These were selected and should be viewed in the context of the broad Market Macro picture reviewed Friday which, heading into the Holiday shortened week the equity markets have seen consolidation following the damage of the prior week, and traders lining up on both sides looking for a break.

Elsewhere look for Gold to continue lower while Crude Oil has a short term bias to the upside. The US Dollar Index continues in consolidation with an upward bias while US Treasuries are also biased higher in the short term. The Shanghai Composite and Emerging Markets are biased to the downside. Volatility looks to remain elevated keeping the bias lower for the equity index ETF's SPY, IWM and QQQ into next week.

Their charts all show short term consolidation in a tightening range as all correlations go toward 1.0 in a crisis or panic. The longer charts show the damage to be limited so far though. The QQQ looks the strongest with the IWM at support and the SPY most vulnerable. Use this information as you prepare for the coming week and trad'em well.

The mobile market has become the the new front line for all businesses.  And the global telecommunications field is no exception.  One company that is battling in the global telecom space is Vonage ($VG) and their stock looks ready to take off to the upside.

The chart below shows the stock price broke out of a long sideways consolidation zone at the end of July.  From there it jumped 28% to 6.69 in 2 days before settling into a new consolidation.  The market downturn has now reset some of the momentum and pulled the stock back 50% of the leg higher.  

What makes it interesting is the potential reversal candle that printed Monday at that 50% retracement, and how it is being confirmed to the upside Tuesday.  Notice that the RSI had pulled back under the mid line and is also turned back higher.   This gives both a target on a Measured Move to 7.74 and a natural stop level under 5.64.  Risking about 20 cents to make $1.90.  Now that is a great reward to risk ratio.  I bought some at 5.81.

Every year I travel with my family to my parents home in Virginia during the Christmas break. It is great to see them and keep the kids in contact with their Grandparents. My mom makes a killer breakfast casserole just for me when I arrive. Well, everyone can eat it, but they all prefer to have an entire box of Cheerios each day for breakfast, so I get the whole thing. It is so good it is one of the highlights of my trip. I might not even go there if she did not make it. Well, probably not true.

I know a lot of people that cannot make that trip back home though. They are left to talk on the phone or text each other. For them the invention of the cell phone and texting is a revolution. It is sad but it also brings to mind a couple of trade ideas.

The stocks of a couple of the small wireless cellular companies are on the cusp of a breakout. What if you could also benefit from the price move in the company stock of the cellular provider you use?

United States Cellular, $USM, is one of those companies. Since June the 39.30 level has played an important role in the stock price. Acting as both support and resistance at some points, it is coming into play for the 4th time. This time it has a rising RSI on the edge of a move into the bullish zone, and the MACD is rising and bullish. Look for a move over 39.30 to send this stock higher.

Vonage, $VG, is another one ready to take off. It consolidated in a bottoming process since late May and is pushing higher now. A pullback to the support/resistance zone between 3.75 and 3.85 might be the last test before a turn higher. The pullback is working off the overbought condition on the RSI while the MACD continues higher. You could try it here against a stop at the bottom of the range or wait for it to start back higher.