Last week the market had had it’s best week since 2009. Hard to believe given the ugly choppiness that has been plaguing the market for the last couple of months. I have put together some setups that I think could work out well with further price action; however, it is important to remain prudent.
In this market, it is very possible to go down just as much as we went up last week. In fact, it is probably likely to go down, so remember to keep stops tight and do not get “buying” happy.
Visa (V) and Mastercard (MA)
Given that consumer shopping has been at boom right now it is no surprise credit cards should be performing well. They usually do this time of year. Both Visa and Mastercard have been trending to the upside over the last couple of months. Look for the same to continue through the rest of 2011.
Caterpillar is generally a good indicator of the global economy and moves in pretty big swings. Watch to see if we can get into the $100′s.
Bank of America (BAC)
Bank of America looks like it may have setup up a short-term bottoming pattern; however, don’t be surprised to see a bit of a pullback after the 3 consecutive up days. A decent play over $5.50. I personally still believe this stock will come down below $5 at some point.