Weekly Active Setups | New Additions UBER, RSPD, XLB

We have three activations over the prior week: UBER, RSPD and XLB.

Key Highlights: A rebound in the S&P 500 in since October 6th has activated long positions resulting from bullish divergences. CPI data to be released today will dictate the short-term direction in equities.

New Activations

• Long UBER
• Long RSPD
• Long XLB

Previous Activations

• Short GOOG (The trade has been stopped out)
• Short AMZN (Tgt 1 hit)
• Short ADBE (Tgt 1 hit)
• Short ITB (Tgt 1 hit)
• Long Corn Future (Tgt 1 hit)
• Short XLV (Tgt 1 Hit)
• Short CRM (Tgt 1 hit)
• Short AAPL (Tgt 1 and 2 hit)
• Short SPY (Tgt 1 and 2 hit)
• Short NFLX (Tgt 1 and 2 hit)
• Short XLY (Tgt 1 and 2 hit)

 

Long UBER (New)

-The trade turned active on October 10, with a break above the trendline.

-Price is trading above the 50-DMA, and closing in to target 1. Target 1 is in close proximity given the bullish divergence’s short duration.

Long RSPD (New)

-The trade turned active on October 10, with a break above the trendline.

-Price is significantly distanced from the 50-DMA and is fast approaching target 1. CPI data on Thursday could prove influential in driving short-term price action.

Long XLB (New)

-The trade turned active on October 10, with a break above the trendline.

-A pullback in the dollar in recent trading has helped Material stocks, leading to the activation.

Short AMZN (Tgt 1 Hit)

-The trade turned active on September 20 with a break below the trendline.

-Price got close to hit target 2 but has since moved away from it and retested target 1.

Short ADBE (Tgt 1 Hit)

-The setup turned active on September 15 with a move below the trendline.

-Price has surged in recent trading sessions and is now testing the trendline.

Short ITB (Tgt 1 Hit)

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

-Price tested the 200-DMA where it fund near-term support after hitting target 1.

Long Corn Future (Tgt 1 hit)

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

-Price hit target 1 and saw a modest rejection there.

Short XLV (Tgt 1 Hit)

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

-Price has fallen decisively through the trendline this time, and got close to hitting target 2. Price has reverted higher and was rejected after testing the 200-DMA.

Short CRM (Tgt 1 Hit)

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

-Price got close to testing target 2 but has reverted higher and is approaching the 200-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 continues to be a barometer for risk for this market, with price slightly rebounding so far this week. It’s hovering near the 50-DMA.

Short SPY (Tgt 1 and 2 Hit)

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

-SPY broke out of its channel and hit target 2, but has risen to test target 1 going into Thursday’s CPI report.

Short NFLX (Tgt 1 and 2 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 is a material change in the previous bullish technical structure. That move is continuing looks poised to hit target 3.

Short XLY (Tgt 1 and 2 Hit)

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

-Price decisively fell below the 100-DMA and hit target 2. It’s since reversed higher to test target 1.