[Platinum Watchlist] (2.13.23) 3 stocks on our watchlist!

Good morning.

Hope everyone enjoyed the Super Bowl.  This week will be focused on the CPI report due out on Tuesday. The market seems fixated on finding some inking of information to support a theory that the FED is going to pause and / or start to reduce rate hikes this year. This despite several FED governors speaking to the contrary such as Michelle Bowman this morning: “We are still far from achieving price stability, and I expect that it will be necessary to further tighten monetary policy to bring inflation down toward our goal.”  

This week I’ll be watching a couple potential set-ups:  

GD has a set-up pattern similar to LMT. We have a period with price action pullback and signs of recovery. On Friday price action closed above the 9 and 200 day SMA, however I would like to see a full candle close above the 200 / 9 for confirmation prior to entering a position. I would also like to see the RSI strengthen and move above the 50 level with the MACD crossing the signal line. This will be one to watch.   

PEP had a full candle close above the 9 and 200-day SMA on Friday after moving sideways for a couple of weeks. Our oscillators show positive movement, but I’d like to see the MACD above the zero level. Because of the wide price action range on Friday, those predestined to enter a position might place a limit above the 200-day SMA in hopes that price volatility could net a lower entry point.  

ABBV had a full candle close above the 200-day SMA a day after earnings. I’d like to see the MACD above the zeros level. Also be aware of the gap below current price action that may or may not get filled with price volatility.  

Release of the CPI Data tomorrow in a known event just like earnings and the data could swing the market in either direction. I’m in no hurry to enter into a new position prior to the CPI announcement. Patience is our friend  

This information is provided for educational purposes and is not a recommendation to buy or sell a security.