Flat Market, Momentum is FIRE

Thursday 10-26-17

 

Sideways Market Movement

Overall Market-

Price action today in the market in a very tight range off of yesterdays bounce at SPY 254.
Any sustained pricing above 255 is a sign for continued strength. October is coming to a close, November is typically a slower month leading into end of year selling in December (tax loss selling).

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 saw a quick reversal as has become typical for this bullish market. Anyone picking up shares of XIV see a strong move today.

FCX (Freeport) This has been a long time favorite here. After yesterdays earnings shake out, price stabilized, will the uptrend continue? on close watch for long signal.
SNAP (snapchat) potential reversal on daily chart, strong volume at close, watch for swing alert tomorrow if you are a subscriber of our swing service.
 

TOP watch for tomorrow, $TOPS (if TOPS is moving, keep an eye on shippers mentioned yesterday), $MBOT, $TNDM, $TTNP & $SRAX

Low Float/Small Cap momentum-

Nearly at a loss for words at the current strength and length of this low float rally. We are now at the tail end of the 4th solid week of momentum. Is there an end in sight? I am not sure but I am not betting against it. Follow the volume, any ticker with a float of less than 10 million shares is a candidate for a squeeze. Keep a close eye on $SRAX, she moves fast.

Use caution when trading these low float names, they can crash even faster then they rise. Lock profits and do not look back, never play the "what if" game on these names. You can be up or down several hundred or THOUSANDS of dollars in minutes and in the case of a T12 material halt, you could be in for massive pain or worse be trapped in a position for days or weeks until material evidence is sufficient to remove halt.
 

Closing Notes:

Emotion and greed is getting to a boiling point. Many on social media screaming easy money and you can't lose... Same warning as yesterday!! 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.