My favorite setups from the ST50 list for next week

I hope everyone is having a great weekend.

Well, it was certainly quite an impressive week with some phenomenal action in individual stocks.  Momentum names were up big, financials took a beating, and solars sold off hard on Friday to give up the entire week's gains.

I still believe there are some warning signs of a a correction - but it has not materialized into actual weakness in the indexes.  On the contrary, the markets held up extremely well in the face of a selloff in Financials and some semis including Intel.

Looking at the chart of the SPY, there are some major challenges ahead.  Some strong resistance areas are coming up in the 120-122 area.  The election is coming around soon, and the majority of earnings will be released the next couple weeks.

It is clear that there are some major hurdles to keep this rally going. It would appear a lot of good news has already been priced in.  But how much good news?  This market has managed to surprise and just like the Energizer bunny, it just keeps on going.

The following are stocks that I will keep on my watchlist from the Stocktwits50 list:

CTSH
AMZN
LXK
NBIX
MIPS - probably my favorite setup

Don't forget to keep an open mind and not be 'married' to a position or an opinion.  Things change on a dime and we must be prepared to adapt appropriately.

Good luck and good trading!