Good earnings last week pushed Exxon Mobil to rally higher, but the highs and lows are starting to converge on this stock – a bearish sign that suggests downside is ahead. Still, Fitzpatrick warned against shorting this one because he things that oil has bottomed. If you’re already long, he recommended placing a stop around $73.50 to keep your gains, otherwise he said to wait until Exxon breaks through its 200-day moving average before getting in.

“If you’re buying Bank of America, you’re gambling,” warned Fitzpatrick. Right now the stock is $1.58 above it ultimate support line of $5 (the absolute low the stock is willing to go). He recommended against going long BAC because the risk is just too much right now.

Wells Fargo’s chart gapped up big time a week or two ago (meaning that its open price was substantially higher than its closing price the previous day), but unlike the other big banks, its price hasn’t fallen back down into the gap. As long as it keeps going sideways, it’ll reaffirm support at this higher level – that’s definitely a good thing for those who own it now. If it falls into the gap, Fitzpatrick warned to stay away.

This stock has seen two big pullbacks recently. The most recent one was big, but didn’t push as far below the lower Bollinger band (an indicator that measures a stock’s volatility) as the one before it did, suggesting that downside volatility is on the decline, and that a discernable support line (the price a stock has trouble falling below) is forming. Both are good signs. Still, Fitzpatrick recommended against buying this one just yet – “…wait for $13.75,” he said.

“I agree with [Jim Cramer], I think you want to be going with these consumer staples here,” said Fitzpatrick. Kellogg saw a deep low in early December, and now the stock’s just above its moving average (the average price over a set number of days – a key technical indicator). A nice 3.1% dividend yield sweetens the pot for this potential long-term play. Fitzpatrick recommended waiting for $48.50 to buy into the cereal maker, with a protective stop around $43.

“This is a good ‘don’t buy’ stock,” warned Fitzpatrick. Good earnings announced last week caused its price to gap up after trading – meaning that is price increased significantly between one day’s market close and the next day’s open. Since Amazon’s price gapped up to its resistance level, Fitzpatrick was anxious about the stock’s potential for the week. “This is a risk trade,” he said, adding, “…just stand aside, let this thing lay its course, and know that Amazon the company is still doing a pretty good job.”

According to Jim Cramer, there are only two banks worth buying right now – JP Morgan and Wells Fargo. But Fizpatrick’s not convinced… at least not yet. The 50-day moving average is defining highs for JPM right now, which means that the stock is likely to pullback soon. “If I owned this right now, I’d be selling to take profits, then reload later at a lower price. That’s not predicting, that’s trading,” explained Fitzpatrick.

Merck has come out of a small volatility squeeze lately, a period of low volatility where the stock trades in a tight range – it’s generally an indicator that the stock is ready to breakout either up or down. Fitzpatrick recommended taking a position closer to support around $30. Right now, Fitzpatrick thinks RAH makes for a better trade.