Bounce at support
Today the market closed lower, however after a sharp decline the market clearly bounced off SPY 254 with a very strong reversal. Closing back at the 255 level, this is the level prior to last weeks gap.
Again my sentiment remains the same here, if this downward move continues, I will be looking at 20EMA for support if this pull back continues for a few days. Closely watching /ES (e-mini S&P 500 future) for a strong futures trade opportunity.
VIX (Volitility) related was on FIRE today. We mentioned this as a top watch on our last blog and What a move we had, Trade alerted on TVIX at $9.40 price quickly moved over 1 full point. Must be fast with these positions, do not get greedy, take profit and move on. All volatility instruments are simply trade opportunity, theses are NEVER buy and hold as they have decay and re-balancing, they are almost always a loser in a longer time frame.
FCX (Freeport) was a strong short today as an earnings play, was on watchlist today.
SNAP (snapchat) continues to show weakness. Finally bouncing today at $14 level.
SPEX (Spherix inc) full disclosure, I am still long off of our swing alert. Possible move tomorrow keep an eye.
TOP watch for tomorrow, all shippers including $DRYS, $TOPS, $GLBS & $SINO
Low Float/Small Cap momentum-
Unbelievable momentum continues in the low float area of note $BONT spiking up 200% in the last two trading sessions. $ROKA showed a powerful move today as well. Lastly all shippers are now on high alert, the sector tents to move together and quickly. I have listed several of the most commonly seen movers above. These have spiked several hundred % in a day. If momentum hits this sector, expect to see fast moves and potential for incredible profits.
Continue to trade price action only, ignore your emotions. October has been AMAZING. Do your best to not over expose your account or take a position to large. Right now it is easy to get away with over-sizing or sub-par entries but this will come to an end. Do not allow yourself to fall victim of the fear/greed cycle. Keep an open mind and eyes focused on the tape. Remember team, this is a LONG game, you won't get rich over night but I can nearly guarantee it is possible to go broke in a week. Always practice proper position sizing, no matter how tempting the market is.... and as always, Let's grow together.
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 licensed broker,dealer or finical adviser. Trading comes with considerable risk and my not be for everyone. Past performance is not indicative of future performance. Never trade with money you can not lose and paper trade to prove profitability before using real money.