It’s time for the holidays and discounts! Electronics and other gift items aren’t the only thing on sale during the holidays. It appears some stocks are trading at discounts as well! So let’s go bargain hunting and start creating a stock wish.

During a bear market like we are currently in, it is extremely important to consider creating a stock wish list. Having a list handy with target prices in mind will keep you from overpaying for stocks. They say you can’t time the markets, I disagree.

The goal while you are creating a stock wish list is to not only find the next winning stock but to try and identify any strong sectors if possible. Stocks in top rated sectors will outperform similar stocks in lesser performing sectors.

So what sectors will be the leaders of the next uptrend? Let’s review a whole bunch of charts and see if any patterns or trends come to the forefront. This article will review price targets and trends for the following companies, listed alphabetically by ticker symbol:

• Apple (AAPL)
• Bausch Health Care (BHC)
• The Walt Disney Company (DIS)
• Facebook (FB)
• General Electric (GE)
• I Am Gold (IAG)
• Micron Technologies (MU)
• Nike (NKE)
• Sirius XM Holdings (SIRI)
• Starbucks (SBUX)
• Whirlpool Corporation (WHR)
• Financial Select Sector SPDR ETF (XLF)

I even take a look at the current Point & Figure price targets for the NASDAQ to see how those relate to the patterns and trends identified on the individual company charts.

I’ve tried to use a cross section of analytical techniques as well. There’s a lot to review so let’s dive into the first chart starting with Apple.

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Apple (AAPL)

This first chart for Apple (AAPL) is a 20 year monthly candlestick chart. I chose a 20 year monthly candlestick chart in order to show 3 different Fibonacci Extension Tools I placed on the chart.

Since it is a longer 20 year time frame on the chart, I chose monthly candlesticks to help remove some of the clutter from the chart. A 20 year chart with weekly candlesticks would be a lot more cluttered with smaller green and red candlesticks mashed together.

Apple (AAPL) has surpassed the Golden Ratio of its first green tool by a landslide. The Golden Ratios from the 2nd and 3rd tools have both been met as well.

Apple’s current pullback and price reversal started after lingering above the last 161.8% Target Lie, the one from the blue Fibonacci Extension Tool.

The MACD Histogram on a monthly candlestick chart shows longer-term momentum. In AAPL’s case, it illustrates longer-term selling momentum that just began. Historically for AAPL’s share price, when a MACD Histogram is just beginning to show selling momentum it is just entering into a longer-term consolidation. AAPL has already dropped $68 from its high and is now just beginning to show selling momentum!?

The likelihood of AAPL re-testing the open gap-up area I identified on the chart is very high when considering the MACD Histogram that is just beginning to show selling momentum. Add to that the fact that most gap-ups tend to close at some point and the probability looks high.

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Bausch Health Care (BHC)

This next chart is a 2 year weekly candlestick chart for Bausch Health Care (BHC). It has made a series of higher highs and higher lows over the last 2 years since bottoming out. If BHC’s share price is around the gray shaded box when I think the NASDAQ is stabilizing, I will look to initiate a long position with the stock.

I’ve made a projection of BHC’s breakout possibility in a previous article for the company. I calculated some nice upside price targets for BHC’s share price. Picking up shares in the gray shaded box would be the icing on the cake. You can refer to some of those upside calculations in the Idea Chamber (member’s forum).

In the short to medium term though, the MACD Histogram on this weekly chart shows increasing selling momentum still which should continue as BHC moves towards the $16.25 – $18 price level – the area of the gray shaded box above.

If you are creating a stock wish list, Bausch Health Care is one that should be strongly considered, especially if shares can be purchased in the $16.25 – $18 target pullback range.

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The Walt Disney Company (DIS)

This next chart for The Walt Disney Company (DIS) is a 5 year monthly candlestick chart. I’ve placed a major supporting trendline and a Fibonacci Retracement Tool on the chart. This longer-term chart indicates to start looking at reversal on shorter-term charts around the $[s2If !current_user_can(access_s2member_level1)]……

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This article review price targets for a lot of companies.

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A reversal can sometimes be identified quicker on a shorter-term (daily candlestick) chart rather than a longer-term (monthly candlestick) chart. But the Northern Doji candlestick pattern last month and the current month’s bearish action with a lower low seems to indicate a pullback towards the main supporting trendline which is also around a 61.8% retracement of the current uptrend

This pullback should not go below the previous low at the $97.68 price level. If the NASDAQ Composite looks like it is stabilizing and The Walt Disney Company is showing signs of support around the $100 – $104 price range, then consider adding Disney to your stock wish list.

From a timing perspective, look to buy shares before the next earnings report if DIS already made it to the support area. If DIS share price is still above the support area before earnings, a short-term earnings pullback could be setting up. Either way, DIS should show support around the $100 – $105  price level.

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Facebook (FB)

This next chart for Facebook (FB) is a 5 year monthly candlestick chart. I chose a monthly candlestick chart to show that FB’s share price is still seeing long-term selling momentum. FB’s share price has broken below its previous pullback low on above average selling volume.

FB’s share price has been stabilizing and rebounding some after the announcement of a $9 billion share buy-back program. Trading the rebound would involve purchasing shares as close to the 100% Target Line and then selling into the rebound. But since most stocks tend to reach the Golden Ratios of their moves (the 161.8% Target Lines), the pullback for FB’s share price does not yet appear over.

The current rebound could be the Wave 4 of its Bearish Impulse wave pattern that appears to be still developing on a longer-term basis. Wave 5 of the Bearish Impulse wave pattern should terminate around the gray shaded box. Wave 5 should complete somewhere between January and April 2019.

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General Electric (GE)

The next chart for General Electric (GE) is a 3 year weekly candlestick chart. I chose a 3 year chart to focus on the last part of its downtrend, looking for any bullish clues that a bottom may be in for GE. It is a little congested at the end of the chart because I have a few different shorter-term Fibonacci Extension Tools placed trying to look for the end of this ugly downtrend.

GE’s share price continues to push lower and is showing signs of a possible bottom. Its share price currently resides at a shorter-term 261.8% Target Line and could see a bounce over the next couple of weeks from this price level. If the MACD Histogram continues its decreasing selling momentum on a weekly candlestick chart next week, a small long position could be initiated.

If on the other hand GE’s share price makes another low, lower than $6.66, the $5.27 and $3.77 price levels are the next possible stopping points.

Trading GE to the upside requires being nimble and taking quick profits until the trend establishes itself.

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I Am Gold (IAG)

This chart for I Am Gold (IAG) is a 5 year weekly candlestick chart. I chose a 5 year chart so it would show the complete 8 wave cycle that has formed for its share price.

Wave A of IAG’s correction formed a very symmetrical Zig-Zag wave pattern. Wave C in a “normal” correction forms into a Bearish Impulse wave pattern. So is the Bearish Impulse wave pattern complete or have one last push down? Either way, it seems worthy of a small allocation of funds if the MACD Histogram continues towards a neutral reading or even a possible change to buying momentum.

My initial price target was a break below the purple channel and closer towards the $2 mark. If IAG’s share price starts to reflect buying momentum in the next week or two on its weekly candlestick chart, you will want to make sure you have established your initial long position by then. I started trading IAG to the upside at the beginning of this week and will continue to do so until the chart says otherwise.

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Micron Technologies (MU)

This chart for Micron Technologies (MU) is a 10 year monthly candlestick chart. I selected a 10 year chart so I could show the anchor points for the 2 different Fibonacci Extension Tools that were placed on the chart. MU’s share price reached

The MACD Histogram indicates selling momentum that is continuing to increase. And since these are monthly candlestick readings, this is long-term selling momentum that is increasing. That indicates that the probability of reaching the lower end of the gray shaded box is highly possible.

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Nike (NKE)

This next chart is a 20 year monthly candlestick chart for Nike (NKE). I used monthly candlesticks because I wanted to look at the longer-term trend for NKE and remove the day to day volatility of its share price.

I see NKE in a downtrend after completing a Bullish Impulse wave to the upside. It’s currently developing Wave A of its correction. Wave A should find support around the 100% Target Line from the red Fibonacci Extension Tool. The red 100% Target Line resides at $62.48.

The $60 price level was resistance until NKE’s share price broke through it at the end of 2017. The $60 resistance level should now be a support area. That support area also coincides with the red 100% Target Line.

Going long on NKE shares around the $60 back could provide an opportunity for trading back upwards towards the $75 price level. But I do not anticipate the rebound from $60 going any higher than the $75 price level. Just 2 months ago in October 2018 NKE’s share price formed a Bearish Engulfing candlestick pattern on confirmed selling volume.

The Bearish Engulfing candlestick pattern leaves no doubt that NKE’s long-term uptrend is over. Any rebound from the $60 price level would be a counter-trend in a longer-term downtrend.

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Sirius XM Holdings (SIRI)

This chart for Sirius XM Holdings (SIRI) is a 10 year monthly candlestick chart. I chose a 10 year chart to include SIRI’s entire uptrend since its days back at $.05.

These 2 trendlines tell a simple story – if the $5.75 area doesn’t hold on the upper trendline, look for the $5 area to hold on the lower trendline.

Look for the MACD Histogram to signs of decreasing selling momentum. This decreasing selling momentum will indicate a probable reversal at the next lower support area.

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Starbucks (SBUX)

This next chart for Starbucks (SBUX) is a 2 year weekly candlestick chart. SBUX’s share price just broke out of a long-term consolidation that began in October 2015. If you are still in the process of creating a stock wish list, then consider initiating a long position with SBUX if its share price can find support between the 38.2% and 50% Retracement Lines.

If SBUX continues to see the increasing selling volume and its share price is in the gray shaded box already, then the likelihood of seeing a reversal in that area decrease. There should be an increase in buying momentum again on the weekly MACD Histogram. When that happens, it’s time to go long again. If you are unsure with any of the shorter-term readings, simply ask for another update in the Idea Chamber.

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NASDAQ Composite – Point & Figure

Last time I checked, there was a bullish and bearish reading for the NASDAQ Composite on its Point & Figure charts. Let’s see if there is any change from a couple of weeks ago.

High/Low P&F Chart – $8,699 Bullish Price Objective

Closing P&F Chart – $6,301 Bearish Price Objective

So the P&F charts remain the same as a couple weeks back, at least for now.

Investors and technicians that subscribe to the Dow Theory do not worry about intra-day stock movements. Intra-day stock movements are taken into consideration for the High/Low P&F Chart. Dow Theory advocates think the only price that matters is the closing price for a stock or the market, not the price range it traveled during the day. The Closing P&F Chart does not take into consideration intra-day price movements, only the closing prices for stocks and indices. Take this information for what it is.

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Whirlpool Corporation (WHR)

The next to last chart is for Whirlpool Corporation (WHR). It is a 2 year weekly candlestick chart. The chart has a Fibonacci Retracement Tool I placed on it to help estimate its probable bottoming price area. This method calculates to a bottom around $80.

In this previous article for Whirlpool Corporation, I suggested that WHR’s share price would be looking for a bottom in the $94.80 – $109.48 price range.

“9/23/2018 – Whirlpool Corporation (WHR) Stock Chart Analysis”

But that article also shows another support level below the $94.80 – $109.48 price range and that support level is around the $80 mark. The Fibonacci Retracement Tool above indicates a push towards that lower support area.

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Financial Select Sector SPDR ETF (XLF)

And the last chart, a chart analyzing the Financial Select Sector SPDR ETF (XLF), is a 5 year weekly candlestick chart. I chose a weekly candlestick chart to illustrate the details of a Bullish Impulse wave pattern to the upside that completed (waves 1-5). The XLF’s share price is now in the process of correcting that Bullish Impulse wave pattern.

The most common pullback would be a 61.8% Retracement, which for the XLF’s share price sits around the $21.50 price area. However if the $21.50 price level does not hold, the $17 – $18.50 price level should. With both increasing selling volume and selling momentum, I would bet on a reversal in the lower support area.

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Creating a Stock Wish List – Summary

Statistically, low prices and ugly price action is followed up by even lower prices and even uglier price action. So when you are creating a stock wish list this holiday season, remember that for most stocks it might be best to just wait. Wait for the entire market to show signs of stabilizing.

And when you think the market might be stabilizing, see how the stocks on your wish list look in comparison to the support areas identified above. If you are unsure, drop by the Idea Chamber and ask for an update.

For the time being, the market is still on a high risk alert to the downside. If Santa does come, consider using any strength to lighten up some shares and wait for some post-holiday sales. Creating a stock wish list may take some time and may not even include stocks I’ve listed above. Make additional requests in the Idea Chamber for any stocks I haven’t covered above. I don’t think a general consensus can be reached yet about any group of stocks or sectors other than most charts show more weakness ahead.

If you are wanting to go long on something, start trading IAG like I have the last week. It is showing signs of reversing right above my previously calculated area. It could see a significant increase if the market correction continues to unfold over the next several weeks.

Good luck trading and happy holidays!

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