Hi Traders, the S&P500 declined in the last four out five trading sessions and finished the week down by 1.2% for the week. Main reason - the UK Brexit poll. On the 23rd June, this coming Thursday, we will learn if Britain stays in the EU. In regular times, leaving should not have a significant effect on US stocks, however, due to the current US economic stagnation, it is possible that the US market will have a strong decline. On the other hand, if Britain remains in the EU, it will not change the current economic balance, therefore, the expectations are for a moderate upside move. Whatever happens, get ready for a very interesting trading week!
Let's see the technical view of the market. Looking at S&P 500 daily, you can see that we pulled back higher and we are just consolidating, waiting for the results this week. So far there has been no trend, so the results this week are going to dictate the market movement.
Let's see the last week's picks. Medtronic (NYSE: MDT) long over 82 USD has reached more than 5%. Just as a reminder, I sell three quarters of my size at 3% profit holding the last quarter not letting it down under my entry price. Our last pick was Computer Sciences (NYSE: CSC) long over 51,10 USD which did almost my 3%, didn't back to the entry point. I hope the trend is going to take it higher and again my target should be 3%. The last pick was Stryker (NYS: SYK) long. It is on the way, did 1,8% and I hope it is going to continue trending higher.
Let's have two picks for this week. My first pick for the week is American Electric Power (NYSE: AEP) long over 67,34 USD. It is a very nice cup with handle formation. AEP is a utility company in the US. Second pick for the week is Crown Castle International (NYSE: CCI) long over 94,75 USD. It is also a very nice uptrend, very nice bull flag. This is a company that does wireless infrastructure in the US.