Short week this week with President’s day on Monday. We didn’t trade last week even though it turned out to be a nice week in the market. I think we have some decent momentum and many of the earnings momentum trades are out of the way, so it should make it possible to find a decent trade.

With that said, the S&P 500 is very close to the 2815 line where it has turned around 3 times before. This is definitely resistance but I wouldn’t be surprised if we blow through it. Market futures are flat as I type, so we will see what the market gives us.

This week I’m watching Amneal Pharmaceuticals Inc (AMRX). Many of the pharmaceutical stocks are looking strong and this one has a nice pattern. Note on the chart that this seems to be rounding/curling up. RSI is not oversold and earnings are not until March. The Biotech ETF, IBB, has a nice move on Friday (it broke through resistance) and I’m expecting good things from it this week. My plan this week is to try to place my order early-ish assuming it doesn’t gap up significantly and hopefully make the most of the short trading week.

Price-wise, I’d like to buy somewhere near Friday’s close ($13.74) and my stop for Tuesday will be around the 10-period moving average line (somewhere near $13.10 now). I will most likely adjust my stop for Wednesday based on how the trade looks.

Happy Trading!