A Few Thoughts

Bullish patterns are in motion as sellers remain non-existent

Inverse Head Shoulder-Daily

The first bullish pattern in motion and moving toward its target is the Inverse Head/Shoulder formed from the Brexit fallout. Rough targets call for a move to 2,225. Shorter-term support levels should be 2,172 and 2,150. As long as the trend of higher lows continues there is little to overthink. Odds continue to suggest higher prices.

Double Bottom-Weekly

Longer-term the move to new highs continues and the Double Bottom formation from Aug and Feb lows suggests much higher prices ahead. Key support on the Weekly comes in at 2,100 and 2,000.

NYSE Base Breakout, Flag, Follow-Through

 A monster base breakout remains in motion and is seeing follow-through after this week's higher high. The Inverse Head/Shoulder formation suggests prices over 12,000 and the recent action has formed and triggered a 4-week bull flag.

IBB Biotech retest

Biotech has been in a downtrend since mid-2015. For most of 2016 the group has chopped back and forth between 290-240. This range has broken out to the upside and is now throwing back to retest 290 as new support.

Zooming in on the pullback we can see a nicely formed bull flag. A move back through the short-term downtrend would suggest a confirmed retest and higher prices would be likely.

Generally these throwback opportunities present strong risk/reward trades. If the flag breaks out higher stops can be placed just below the new pivot low. The trade thesis is then if the stock stays above the breakout level it can be held with confidence.

Big Selloff in Gold

Gold has been consolidating its big run recently and has been doing so in a very choppy manner. Friday had a strong gap higher open that was quickly sold and GLD closed below the prior day's low. When a stock trades above but then closes below the prior day's range it can be a signal of trend reversal and caution should be warranted.

Longer-term there remains no damage to Gold's new emerging trend, but short-term its tough to be aggressive in this area after Friday's weak action.

XLE continues to build reversal 

Energy as a group keeps forming higher lows and pressing against resistance. It appears its just a matter of time until this breaks higher.

KMI

Playing off a strengthening Energy sector, a stock I like a lot and am buying right here is KMI. After Warren Buffet disclosed a position in the name back in January shares stabilized and tightened from March-July. KMI then broke above resistance and has spent the last 3-weeks consolidating that move. 19.50 has proven so far as a confirmed retest as price has moved up from its bull flag above a rising 20 Week SMA. Stops below last week's low present a very strong risk/reward.


ETSY

One of Wall Street's favorite stocks to hate appears to be turning higher following its disastrous IPO. ETSY fell from $35 down to nearly $5 in 2015, but from November through July the stock formed a very tight base. Two weeks ago ETSY broke above 9-month resistance on the highest weekly volume ever for the stock.

I appears a change is coming for this name and someone is accumulating the stock heavily. We are long as well.

30 min Flag

Shorter-term the stock displays strong price action. A bull flag is now rolling higher and a push above this week's high could propel another leg up. I like this one and have good gains to show already. This could still be very early in its turn.

HAIN

One of my favorite stocks made a huge breakout on Friday. Organic product producer/distributor HAIN made a big move on tremendous Daily volume to close the week. There are many rumors swirling about a potential buyout in the near future, although nothing specific has been discussed it appears the writing is on the wall that HAIN will be acquired.

The price action tells the story here better than any rumor however as it is now resuming higher off a 6-week tight consolidation. I wanted to see a closing price above $53.08 to get involved, but was forced to act early as the action became very bullish, we entered near $54.10. I like this here and above $52 it seems like a good bet to press higher.