Healthcare: The Next Bear Victim

Today's 5hit List

One of my screens looks for stocks that have declines on larger than normal volume. I can't tag every stock on this list, but a lot of these stocks have been posted on this blog in the past year. ABT ALGN ALK ALL AUB AWI AWR BLD BX CATY CBU CMA CSL DHR DOV EEFT EFX EL EW EWBC EXPE FELE FITB FLNC HRI HUBG INDB IRDM JKS KEY KMI KMPR KNX LAD LBRT LESL MTB MTCH NEE NKE NSC NTES NTRS OLPX OZK PEN PNFP PNR POOL PPG RBC RF RGEN RHI RNR SCI SGEN SITE SIVB SKX SMPL SNA SNV TCBI THG THS TMO TRMK TSCO TSLA UA UNP VLY VMC WAL WDFC WHR WOOF WSO WU XEL ZION

What the h?

The h-pattern is hell for bears in bull markets and hello new lows in bear markets. Some h-patterns are at their moment of decision right now. Others are at various stages, some bounced where a bull would want them too, some broke, some are still early in formation. The most important and imminent two are ARKK and FB. Both are near their 52-week lows.

Easter Charts

ALGN Begins Closing the Gap

Bounce or Final Washout

I find my bearishness alleviating with the decline in price, but this is now a far more volatile situation than it was in the prior weeks. The window for a "crash" is open, for capitulation selling as everyone who hoped stocks like ARKK would turn around throw in the towel. Or the first wave of people who have been holding stocks like Apple and Tesla and Amazon, and refusing to believe the party is over, realize they had better get out. Apple lost support at my line of $167.46 and it hasn't retaken it in pre-market, but could easily take it in regular trading hours. I will be watching this closely because it was the position I did not close yesterday because my littlest one decided to take a glass dish out and smash it at the close. Work from home means I have a P/L chart of diaper changes. 

Stocks like ARKK should be about done for now and a bounce is forming. I don't know if I have the stones to buy ARKK if it fills the gap at $72.83. Some charts like CHTR and ALGN that had been my targets, didn't plunge with the market yesterday.

Energy looks like a better short and if energy slide, that is good news for technology because it means some inflation fears will reside. The market doesn't always trade it based on that relationship, but sometimes. This AM, XLE is down and Nasdaq is up so...

That said, if the Nasdaq isn't done yet it could again become a compelling short if it bounces to a resistance area. It is currently probing a high-traffic zone. The next one is between 15240 and 15350, above that is 15492.

AAPL, SMH and XLY are my top picks for Nasdaq/tech here because I don't want to be in these smaller single names when the market reverses and things could be so volatile that liquidity is at a premium. Click on the tags below to see those charts.

The S&P 500 Index and Russell 2000 aren't sending any bullish signals the way the NQ has, looks more like a weak bounce thus far. Who is the leader?

Will Bitcoin be a survivor or the next shoe? It still sports a very bearish topping pattern, but it hasn't completed. This is relative strength if a rally is incoming.