I have a couple friends that shall remain nameless that have been looking for a market top the past few weeks. However, I have found myself long to the hilt during this time and it has been paying off. Maybe the market is due a pullback, but I keep finding long setups and will continue to trade them until the market tells me to stop. Even while the indexes were pulling back a little last week, there were several individual stocks trading very well. This is typically a trait of a healthy market and with all the indexes sporting rising 20, 50, and 200 day moving averages, it appears that there is still potential for higher prices.

Here are a few stocks I am adding to my watchlist for this week.

I thought $AFFY was ready last week, but it stalled out with the markets weakness. However, it did not suffer through any real weakness and has traded in two very tight low volume candles. Any move above these could signal a breakout attempt. A drop below them would mean it needs more time, or a failure.

$LIFE is another one that made it on to my radar for the week. It has spent most of the year consolidating a breakout and only recently started to turn higher. It is starting to form higher lows and is currently forming a bull flag after clearing some resistance. I believe that if it clears the flag, it will make a run at this years highs.

$HII is also worth watching as it trades in a very tight range. Recent IPO’s are always intriguing as there is no long term resistance holding them back. $HII has stalled out near $41.50-$42.00 on a few occasions and as recently as a few weeks ago. However, the pullback from these highs has been orderly, and $HII remains above an upward sloping 50-day moving average. If $HII can clear $40.50ish, it may challenge for new all time highs soon''thereafter.

As with all trading ideas, please perform you own due diligence, check earnings, and make sure if fits your trading plan.

Good Trading,

Joey