Another day, another impressive market move.
The S&P 500 Index (SPX – quote) wasted no time in reclaiming the 2100 level, closing comfortably above it. Meanwhile, the Nasdaq and Russell 2000 each gained some +0.6%.
Strength among sectors and individual stocks was even more apparent, as several trading setups took shape. JPMorgan Chase (JPM) and Wells Fargo (WFC) both shook off lukewarm earnings reports and had strong advances as did several big momentum stocks like Amazon (AMZN) and Google (GOOG).
Not surprisingly, biotechs continued to flex their muscles: The iShares Biotech Sector ETF (IBB) broke out of a short-term consolidation and closed at new all-time highs; it looks poised to reach 400.
In my opinion, it would be foolish to fight this broad market strength.
The following are five of the stocks with trading setups that I will be watching tomorrow.
Ambarella Inc (AMBA) – This stock was given up for dead following that ugly drop in June. But today’s strong push off $100 and close at session highs means we should not be surprised if AMBA continues to trade higher – potentially toward $115-$120.
Jazz Pharmaceuticals (JAZZ) – After a three-month sideways consolidation, JAZZ reclaimed $180. Given the overall strength in this sector, JAZZ could be setting up for continuation toward $190 and breakout to new highs.
UnitedHealth Group (UNH) – UnitedHealth is in the process of breaking out of a four-month trading base. This will likely result in a continuation toward $130. NOTE: UNH reports earnings later this week.
Veeva Systems (VEEV) – There’s a somewhat sloppy price structure here but VEEV seems ready to push into the gap and likely toward $31-$32.
Intrexon Corporation (XON) – Today’s +8% advance could be just the beginning of a breakout for XON. The breakout comes from a lovely four month Cup and Handle pattern. This could bring a move toward $55-$60.
Thanks for reading.
No position in any of the mentioned securities at the time of publication. Any opinions expressed herein are solely those of the author, and do not in any way represent the views or opinions of any other person or entity.