Winter is Over But the Goose Might Not be Cooked

Equities are off session highs in the final hour as I write this, as Netflix earnings tonight linger. All things considered, though, barring a horrifying crash into the bell bulls can likely take solace in the lack of real panic or fear on the back of the headlines over the weekend. 

The S&P 500 Index is initially pausing at its declining 50-day simple moving average, which is nothing out of the ordinary. What I am looking to see more than anything else is whether small caps in the IWM ETF can continue to operate above all daily chart moving averages, as well as whether a proliferation of individual charts keep tightening up and acting well. 

On that note, Canada Goose, below on its daily chart, is a name we played with Members a few months back during its feisty uptrend. Since then, the chic winter jacket maker has cooled off, forming a symmetrical triangle consolidation highlighted, consisting of lower highs but higher lows by price.

While it is true that winter is over, it may be a mistake to only look at GOOS as a winter play. In other words, perhaps just as everyone is looking towards summer the stock may be gearing up for a new leg higher. $35 would be an initial level to clear and hold above. Either way, there sure seems to be a dearth of sellers during this pause, which gives me even more reason to stalk the Goose for a fresh swing long entry.

Even though winter is in the books, the Goose may be far from cooked. Understand that we are talking about a retail sector with jaw-dropping moves from the likes of ANF CROX GES LULU even ULTA now. Thus, a new school winner like GOOS, along the lines of OLLI, must be kept on the radar.