Welcome to our new Market Blog & Trade Idea service.
Our first official post on our new site is here. Lets get this thing started!
The zombie like march continues, new all time highs and no end in sight... that said the market feels largely over bought and is getting expensive, however irrational markets are irrational no reason to sell here. Continue to ride this wave until some kind of major event that could derail this rally.
Events keep an eye for potential impact on this historic markets.
Interest rates - central bank tightening is nearly always bad for value on stocks
Budget/Health care - another set of unknowns that have been "promised" change. nothing yet.
North Korea - Short of an actual war, I would avoid this shock and awe used by the media.
The real challange will be if this moemoentum will continue through year end and into Q1 2018. time will tell.
Low Float/Small Cap momentum-
What an amazing month October has been for low float momentum stocks. Incredible moves and retail fever is high. We have not seen this type of momentum since the start of 2017, trading during that period was fast and extremely lucrative. October looks to be shaping up to be a repeat of the start of this year.
$HMNY has to be the story of the month so far in the middle of September it was $2.50+- and ran over 1000% into mid $30's. Other movers, $SRAX, $CAPR $ONCS and several others produced returns of over 50%. These names were alerted on our service a few times.
So the mystery question is... when and how will momentum die off again? Over the last few years most of these momentum periods come to a screeching halt when a ticker literally crashes and traps overly enthusiasticretail traders and massive losses are encountered. For now momentum continues to be strong, keep an eye on low float movers. They are having strong follow up moves in subsequent days after pulling back for a safer entry.
Plays to watch this week -
Personally I am watching $NVDA, it is at psychological resistance $200+-, if she breakouts and the overall market moves higher look out!
$ETRM, a bottom play we took last month for a decent profit. On watch for next leg up.
$CVM, high risk play, on watch for potential squeese back to the 200 day EMA +- $3, currently at $1.84
Other large cap stocks this week, powerhouses $NFLX, $BABA.
A favorite of mine on watch again is $CHK. watching long term support $3.50, she breaks below, could signal a strong short.
Disclaimer: As always, we are just an investing club here, seek financial advise from a professional before acting on any of this information. It is strictly my opinion and what i am seeing in the market. I am not a lisenced broker,dealer or finincla advisor. Trading comes with considerable risk and my not be for everyone. Never trade with money you can not lose and paper trade to prove profitability before using real money.