A couple of stocks I will be tracking very closely this week.

The markets yet again tried to prove as many people wrong as possible. While many were thinking we may go lower the markets surprise once again. She has shrugged off some negative news and continues to push higher. We are short term overbought here and might see some consolidation if not a bit of a pull back. We are in earnings season and that can keep the current market volatility intact. We have seen impressive reports out of companies which has helped heal the markets some. The week before last, the markets were looking very weak. The turnaround last week with fairly good volume has given the bulls some fire power and forced many shorts to run for cover. There are still many shorts camping out and if these markets can sustain some upside momentum we might witness large moves higher in part due to short covering and money from the sidelines that will be put to work by fund managers in fear that they will miss the ride up yet once again.

With that being said, I believe last week was a positive one for the bulls that can help build stronger momentum. As always use proper money management and allocate accordingly when taking on trades.

Some stocks I will be watching super closely and trading this week are,

IPI - 21% short ratio I continue to like the Ag space here (DBA and MOO)
IOC - 10.8% short ratio
BG - I will be looking to get net long some call options here nice Inverted H&S.
AGO - looking for a break of resistance for a possible $1 move up at minimum
OII - looking for a break of resistance
CREE - looking for a move to $77 look at some 75 calls or verticals
MELI - 19.8% short ratio, looking for a breakout


Keep a close eye on Basic materials as well (XLB)

A couple of lower priced possible movers

HOV
GSI
SEED
HEAT

I am leaning bullish this week again and will use proper stops. Keep in mind that the market can humble even the most seasoned veteran so please use proper money management.

XHB continued to see bullish call buying so watch the Home builders closely.

With oil prices moving up and being in Hurricane season, keep an eye on the oil names along with the Solar space.

Lastly watch Real Estate. If we do continue to push higher the Tide will tend to lift all boats so just make sure you are on the right side of the markets

Trade Well,
Pete