Weekly Active Setups | ITB, Corn New Additions

We have two new activations over the prior week, ITB and Corn Futures.

Key Highlights: AAPL is back to target 2 and IWM has broken down further below the 200-DMA, approaching target 3.

New Activations

• Short iShares US Home Construction ETF (ITB)
• Short Corn Future

Previous Activations

• Short XLV
• Short Bitcoin (Tgt 1 hit)
• Short Natural Gas
• Short WMT (The trade has ben stopped out).
• Long MRK (Tgt 1 hit)
• Short XLRE (Tgt 1 hit)
• Short CRM (Tgt 1 hit)
• Short AAPL (Tgt 1 and 2 hit)
• Short IWM (Tgt 1 and 2 hit)
• Short SPY (Tgt 1 hit)
• Short NFLX (Tgt 1 hit)
• Long MCHI (Tgt 1 hit)
• Short XLY (Tgt 1 hit)

 

Short ITB (New)

-The trade activated on September 13 with a move below the trendline.

-Price is now at the 100-DMA, and if it does not hold, we would expect target 1 to be reached soon thereafter.

Long Corn Future (New)

-The trade activated on September 11 with a move above the downward trendline.

-Price has not continued higher after the break of the trendline, so we will continue to monitor this trade for evidence that a new potential uptrend has started.

Short XLV

-The trade turned active with a break below the trendline on September 5.

-Price broke below both moving averages, but has since reclaimed the 200-DMA and is testing the 50-DMA.

-Health Care’s recent rally has come alongside a rally in other defensive sectors.

Short Bitcoin (Tgt 1 Hit)

-The short set up was triggered on August 16 with a break below the trendline. Bitcoin had a sharp move lower since then, hitting the first target two days later, and falling below the 200-DMA.

-Bitcoin was within a few points of hitting the second target this week, with price now having rebounded back towards target 1 in recent days.

Short Natural Gas (Tgt 1 hit)

-A break below the trendline on August 23 activated the short trade.

-Price has continued to trade around the trendline, now slightly above the 50/20-DMA after bouncing off the 100-DMA last week.

Long MRK (Tgt 1 Hit)

-The trade activated on August 11 with a move above the short-term trendline.

-After briefly falling below both moving averages, MRK is turning higher again towards target 1.

Short XLRE (Tgt 1 Hit)

-A break below the horizontal resistance line on August 3 activated the short trade.

-XLRE hit the first target Wednesday August 16, allowing traders to take some profits. It briefly fell below its upward support trendline, but has rebounded higher since then, hovering near target 1.

Short CRM (Tgt 1 Hit)

-The trade activated on August 2 with a break below the trendline starting in December of 2022.

-CRM rose back above its 50-DMA recently on better-than-expected earnings, but has not seen any more follow through to the upside since then as it is currently retesting the 50-DMA.

Short AAPL (Tgt 1 and 2 Hit)

-The trade was activated on August 2 with the break below the trendline that has held since March.

-AAPL’s investor day did not stoke renewed confidence, with the stock now retracing the recent rebound entirely as it moves back below target 2, allowing traders to take profits if they have no already done so.

Short IWM (Tgt 1 and 2 Hit)

-The trade was activated on August 2 with the break below the trendline from the beginning of July.

-Small caps are seeing outsized weakness, with IWM now falling back below the 200-DMA, and closing in on target 3

Short SPY (Tgt 1 Hit)

-The trade was activated on August 2 with the break below the trendline that has held since May.

-SPY has been hovering around the 50-DMA recently, with the latest CPI print on Wednesday not causing much volatility.

Short NFLX (Tgt 1 hit)

-The break below the upward trendline on July 20 activated the short trade as NFLX had lackluster earnings results.

-Significant move below the price channel on September 13, as price reverts back towards target 1.

Long MCHI (Tgt 1 Hit)

-Stimulus measures vowed by the Chinese government helped MCHI breakout above the trendline and activate the long trade on July 26.

-MCHI remains below 50 and 100-DMAs, with recent stimulus measures not provoking much confidence for Chinese stocks.

Short XLY (Tgt 1 Hit)

-XLY broke below the trendline which activated the short trade on July 20.

-Price has reversed higher above the 50-DMA, largely driven by TSLA performance with recent Wall Street analysts upgrading the stock.