Home » Watchlist Update: Not Much Love in the Market this Valentine’s Day

Watchlist Update: Not Much Love in the Market this Valentine’s Day

Last week was another choppy one for stocks.

The major indexes continued to bounce back and forth within a tight range, showing indecision about which way they will go next.

On Thursday morning, markets initially made a strong rally but reversed hard in the afternoon.

Perhaps more importantly, the reversal happened on greater-than-average volume.

I am still seeing way too much volume on recent down days to conclude that the selloff is over and it is once again time to go long in size.

Therefore, we are spreading our bets this week between long and short trades.

This way, we’ll get a little bit of exposure on each side so that we’re prepared for whatever the market may throw at us.

Personally, I am expecting another leg lower. But that is just a feeling and in no way something to base your trade decisions on.

As always, I will follow the market and let it dictate my trades.

Walmart Inc. (Short)

First up is a bearish idea in Walmart Inc. (WMT), the massive $376 billion discount retailer.

Here’s how the chart is setting up…

Weekly Chart of Walmart Inc. (WMT) — Source: TC2000

And here’s how the stock is scoring on my Stock Surge Indicator (SSI):

  • Surge score: 45/100
  • % Above 52-wk low: 8%
  • Sales growth: +4%
  • Triple momentum: yes (short)

Despite success with its grocery pickup and delivery business, the stock looks very toppy.

As you can see in the weekly chart above, WMT has made a series of lower highs for the last six months.

The $134 level seems to be the line in the sand. If this level fails, look for a quick move to the downside.

I would consider shorting WMT either on a break below $134 or on a bounce up into the $140 range.

I would close the short trade if price breaks above the white downtrend line shown on the chart.

SilverBow Resources, Inc.

SilverBow Resources, Inc. (SBOW) is a $400 million oil exploration and production company.

I added SBOW to the Watchlist last week, but it has not yet broken out.

Here’s how the chart is setting up…

Daily Chart of SilverBow Resources, Inc. (SBOW) — Source: TC2000

And here’s how the stock is setting up with my SSI:

  • Surge score: 99/100
  • % Above 52-wk low: 331%
  • Sales growth: +117%
  • Triple momentum: yes

After a dip early in the week, shares snapped back Thursday and Friday, showing good “tennis ball action” strength.

Unfortunately, the low of the shakeout move in January is too far away to use for a stop.

Therefore, I suggest using an arbitrary stop loss of somewhere around 8%.

Look for a move above $25.55 as the entry trigger.

Signet Jewelers Limited

Signet Jewelers Limited (SIG) is a $4.4 billion luxury goods retailer with recognizable brands like Kay Jewelers and Zales Jewelers.

Here’s how the chart is setting up…

Daily Chart of Signet Jewelers Limited (SIG) — Source: TC2000

And here’s how the stock is setting up with my SSI:

  • Surge score: 94/100
  • % Above 52-wk low: 136%
  • Sales growth: +18%
  • Triple momentum: yes

SIG is an interesting setup in the consumer cyclical space.

This is one of the only areas where breakouts are getting traction (along with energy and a few regional banks).

Last week, the stock broke the downtrend line and found support against the 200-day moving average.

It is now tightening up sideways with resistance near the $88 area.

Look for a breakout above the green horizontal resistance line on the chart.

We need to see above-average volume for confirmation.

Lastly, if you’d like a step-by-step walkthrough on how to best take advantage of trades like these…

Be sure to check out my article, How to Follow My Weekly Trades, to know where I’m buying or shorting so that you can follow along.

Embrace the surge,

Ross Givens

Editor, Stock Surge Daily

Brand New Strategy for Profiting from AI Stocks.

There’s a brand-new strategy in 2024 for going after big profits in AI stocks. It has nothing to do with Nvidia, Microsoft, Meta – or any of the big AI stocks the media can’t stop talking about.

It has to do with a fast-moving “backdoor” that has opened in the AI market... A backdoor that could send a very special class of AI stocks rocketing into the stratosphere.

Ross Givens
Ross Givens

I bought my first stock when I was 12 years old. It was Microsoft. I’ve been a registered financial advisor. I’ve worked as a stock broker. I ran a managed fund. I was a Vice President at JP Morgan with Series 7, Series 66 and Series 3 securities licenses. I’ve been featured on Fox Business, CNBC, Bloomberg, and a bunch of other networks. The only thing I enjoy more than making money, is helping YOU make money.

With Ross Givens

Looking for an edge? Ross has the inside scoop on top analysis that will help grow your portfolio.. Receive a new stock opportunity every day and get ready to see your investment SURGE!

Tech stocks are rallying – and Ross Givens’ #1 Tech Stock of the Decade has been making BIG moves you don’t want to miss.

Whats in the Article