Hawk’s Scan Sentry Report January 30

Welcome to Hawk’s Scan Sentry Report. This is Sunday night with equities analysis from Jan Arps’ Scan Sentry Toolkit for the week beginning January 30.

This week’s technical analysis will be short and sweet. After testing 1330, as predicted two Scan Sentry reports ago, the S&P daily futures contract has retreated a bit. As of this weekend the Radar2 Price Leader has officially moved south of the center-line into deceleration mode, and unless the market can generate some more buying pressure soon, the Radar1 Fear Greed indicator is exhibiting a Bearish Pivot divergence implying it may be time to exit long positions in anticipation of a ‘short-term’ market correction. If it does go south, we’re looking for resistance around 1280; and then 1260 will be the line in the sand. I’m looking to buy pullbacks in these areas. I wouldn’t be surprised to see the NQ contract come back and test the 2400 range in the near future.

Of course, the market will do what it wants… if we do break through 1330 to the upside on the ES contract the market will likely be hungry to test last year’s highs around 1350.

We’ll see… I am, as always, looking at trading opportunitieas in both directions so that I can be prepared to trade with the tides of the market index trends. Here is a sampling of a few that are on my watchlist this week and some of the reasons why.

_____Longs_____

LOPE

(This is a stock which broke out to new highs with pleanty of buying pressure 12 bars ago and is retesting the breakout point. I like the Pullback 23 signal at this key juncture, as well as the upward pointing Radar2 Price Leader).

CCI

(Bullish Radar1, Radar2, Radar3, Triple Trender… it looks like the price has paused here. Look for a pullback into the Triple Trender for an entry for a longer term trade. Stop-loss around $43.48).

_____Shorts_____

PCG

(This is a test of a downward pointing trendline following a Bearish pivot divergence. Put your stop just above the Long-term Trender ar $12.13).

CRR

(I like the Trender Pullback into the Long-term Trender just before the gap down. Not much buying pressure here).

May the trend be with you,

Hawk

Jan Arps’ Traders’ Toolbox is not an investment advisory service nor a registered investment advisor or broker-dealer and does not purport to tell or suggest which securities customers should buy or sell for themselves. Examples presented on this site are for educational purposes only. It should not be assumed that the methods, techniques, or indicators presented in these examples will be profitable or that they will not result in losses. There is a high degree of risk in trading. Readers using this information are solely responsible for their actions and trade at their own risk. Readers should always check with their licensed financial advisor and their tax advisor to determine the suitability of any investment.