Sample ProSelect Stock Report

Chart Study:

Last week, the S&P formed a pivot low on higher volume. The pivot low was an undercut of the August and October lows. Undercuts tend to provide fuel for a bounce due to trapped shorts.

The RSI (20) is still below the 50 level, but close to crossing above 50 if the market continues to rise.

Last week's action puts the market back in BUY MODE, but the S&P will face a test of resistance at the 10 SMA, if not the 50 EMA.

Weekly Market Review:

Last week closed out the month of January with losses on all three major indexes. The Nasdaq fell -7.8%, the Dow declined -5.5%, and the S&P dropped -5.1%.

But last week was a different story. The Dow rose +2.3%, the S&P jumped +1.7%, and the Naz edged up +0.5%.

Monday's Economic Reports: Personal Income, Personal Spending, Core PCE Prices, Construction Spending, ISM Index

Market Direction Category: (3) Bearish Under Buying Pressure

Market Correction Risk Rating: Market in Correction

The market has shifted into a short-term uptrend, and it could lead to an end of the correction, but more evidence is needed. The market momentum is still bearish in the bigger picture.

Momentum is short-term bullish, so the long side will reap the best gains, but we must see how the market reacts as it moves higher. The bears may come back in and squash the rally.

Monday Portfolio Preview:

Market Mode: BUY

Last week the character of the market changed. One new long stock setup was listed (OLLI) and three longs triggered (OLLI, TAST, PLKI). That alone tells you the market has turned bullish, at least short-term.

In addition, AVGO was stopped out on a gap up on Friday, and 2 out of the other 3 shorts closed with a loss on the day.

The shorts will be discretionary exits on Monday (see below). They may provide short setups again at their 50 EMAs, but only if the market also stalls out. Right now the path of least resistance is to the upside.

Stocks with Unrealized Gains: 5/6

OLLI +8%

PLKI +2%

TAST fractional gain

MNST +6% (short)

HUM +3% (short)

Stock with Unrealized Losses: 1/6

UHS fractional loss (short)

For Monday:

Adjust Stop Loss: (2)

TAST raise @ $11.98

PLKI raise @ $57.84

Stocks Delisted/Suspended: (0)

Discretionary Exits: (3) (all shorts)

MNST (bullish close Friday)

HUM (intraday positive reversal Friday)

UHS (closed back above trigger price on higher volume)

ProSelect Stocks Reporting Earnings This Week: (0)

NEW ProSelect Stock (LONG): ELLI
For stock pick analysis, sign in at TradeLikeAPro.com and go to "ProSelect Stock Setups."

NEW ProSelect Stock (SHORT): NONE
For stock pick analysis, sign in at TradeLikeAPro.com and go to "ProSelect Stock Setups."