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The T3 Morning Market Call: Can Extended Market Rally Continue Without Rest?


Yahoo is up a bit as it buys Tumblr, a deal that is receiving widespread praise.

Some set-ups that look poised to break out on an intermediate-term basis:

Stanley Black & Decker (NYSE:SWK) has a wedge pattern developed for more than a year. The big level is $82 and the stock looks ready for a breakout.

Praxair (NYSE:PX) broke above the downtrend trend line that started in April 2012 and is flagging above all key moving averages. It showed some relative strength Friday. Above $115.46 we could see a move back to $117 from April's pivot highs and higher prices after that. The stock has a macro uptrend support since August 2011. The company engages in the production, distribution, and sale of atmospheric and process gases, and surface coatings in North America, Europe, South America, and Asia. Praxair has a market cap of $33.5 billion and is part of the basic materials sector and chemicals industry.

Corning's (NYSE:GLW) first entry was on April 24 when it broke above the downward trend line that has been controlled the stock since August 2011. GLW saw a nice move since as it gained 18% within one month, and looks like it's setting up to give us an additional entry above $15.66, which is the key resistance from November 2011's pivot highs. The stock also saw relative strength on Friday.

FMC Corp. (NYSE:FMC) has been grinding higher after finding some support at the 200-day moving average in April. It's currently flagging above the 8-day moving average after seeing a nice micro breakout move on May 14. FMC looks like it's setting up for another breakout above $63.15.

Precision Castparts (NYSE:PCP) saw a nice gap up from earnings and flagging nicely above all key moving averages. If it gets above $213, it could trigger the next round of buying. PCP is a Fortune 500 company that is headquartered in Portland, Oregon, and manufactures metal products and components for the general industrial, power and aerospace markets.

Oil Servicers ETF (NYSEARCA:OIH) has a big level at $45 on the weekly chart. A move through this level with some volume could add some power to its recent rally as $45 marks a macro breakout level.

Anadarko Petroleum (NYSE:APC) also has a year-long wedge pattern. The stock resumed well after the most recent pullback and looks poised for a breakout above $89.70.

Marathon Oil (NYSE:MRO) is pushing into a major resistance level at $35.86 area. There is a macro wedge pattern that has been developing in this stock since 2011. It might make more sense to lean toward short-side for now as the stock just saw a big straight-up move since April 22 but on a longer-term basis, MRO looks like it's setting up for a macro breakout above $35.86-36.

ConocoPhillips (NYSE:COP) broke out of the ascending channel recently and is flagging nicely above the 8-day moving average. It could see some continuation above $63.14.

Lululemon (NASDAQ:LULU) is worth a look if it can get above $81.77.

Chipotle (NYSE:CMG) also looks okay but needs to clear $377.

Metals continue to take it on the chin and have been in broken trends for months. Silver (NYSEARCA:SLV) in particular has been getting hammered since futures opened last night. Pivots have been important here as well. Intermediate traders could have made adjustments in gold (NYSEARCA:GLD) around $161, then macro guys around $148.50 and now we are back near reactionary lows of $130. Next big support is $124-127, which we mentioned many times as a spot it can get to in since the macro break.

Big Ben speaks on Wednesday, which will be the focus of the week.

I will look to create cash flow like everyone else, so let's try and put together a nice week before Memorial Day.

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Scott Redler is flat.
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