Big Sunday Study Edition

 

Sunday 10/29/17

Big Sunday Study Edition

ALL TIME HIGHS

Overall Market-

Price action during Fridays market showed real strength, starting in premarket with a strong gap up, after a very quick pull back the market RIPPED higher; SPY showing solid volume, particularly into the close. There is a very small gap in the chart now that may need to retrace in comming days/weeks but for now status quote bullish sentiment is strong.

Until there is substantial news in the form of; Tax code, Fed rates, North Korea or some surprise political action, my opinion is to IGNORE all other news. Keep in mind that by nature people are always looking for reasons for the bad things to happen or things to go wrong. Main stream media is expolits this natural tendency we all share and capitilizes on it. If any when the market turns it will not be because some fool on CNBC is calling "TOP" on the market.

TREND IS YOUR FRIEND, There have been no crosses on any of the major moving averages. Technicals remain in tact.

Expanded Sunday Edition of ticker watch

VIX (Volitility) Spiked last week to a high of 13.20 mid week. As of friday it was as low as 9.74. This level has been a resting place for volatility since may. Another signal that the broader market is saying "business as usual".

FCX (Freeport) has an UGLY chart now, bouncing at $14 level early Friday morning around the same time the market also turned. There is a gap to be filled on this chart. Potential for a long here if $14 is confirmed level for bounce.

CHK (Chesapeake Energy) This name has shown weakness off the back of an analyst down grade and PT at $2.00. However, Friday showed amazing strength, bouncing with the market with volume showing bullish action above $3.50 long term support level. On watch for a long here. Would prefer to enter at $3.60 near term support if possible on a pull back.

SNAP (snapchat) Alerted on Friday, long here. Profit stop in place here $14.85. Any sustained price action over $15.38 is a strong bullish sign.

AMD (Advanced Micro Devices) Darling of the semiconductor space for the last year showed weakness off the back of a strong earnings report. Large gap down last week, selling off for 3 days. Bouncing friday with higher than average volume. It is currently below $12 support level. Watching for a long here. Price is just under 200 day EMA, typically this is a spot where trend will be determined, if we consolidate and hold above $12.00 & 200EMA. I will be looking to go long.

 

TOP watch for this week and tomorrow;
$MRNS
(reversal pattern on daily w/ breaout)
$NGL (Bounce off $10.25 support, this will move with oil price, possible reversal here, dividend and earnings in November)
$IMGN (200dayEMA play here, bounce around May pivot price, $5.50, earnings this week)
$QBAK (low float, high risk. daily breakout set up)
$HTGM (already long here, 200dayEMA breakout)
$MGTI (bounced off 200dayEMA, moving averages cross, potential reversal, unconfirmed)

Low float tickers to watch $IZEA, $NETE, $SKLN, $TNDM, $ATOS, $TEUM (no real set ups here, just watching based on recent price aciton)

 

 

 

Low Float/Small Cap momentum-

Momentum was slower on Friday, it felt a lot like a friday in the middle of the summer instead of one in fall. I am unsure if this is the end of our current momentum run or if everyone is just trying to close out the month on a strong note by protecting profits. Keep an eye on low float movers, if you see momentum do not fight it. We have not had the supernova that typically kills momentum, so I'm betting on more of the same this coming week. 

Keep our caution below about low float fresh in your mind, when momentum dies, it dies in a flash.

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:

It is a fresh week and the end of a month. Be aware that sentiment in the market can change quickly. That said Sentiment remains bullish until proven otherwise. If this is true strength in the market we should continue to move higher with little resistance. Do not rush a trade Monday morning, let the market settle into a new week and trade price action after direction has been established. Try your best to not get greedy, we have been killing it all of October. Finish the last day of the month strong, we can carry that momentum into November. Nothing worse than ending one of the best months of the year on a bad note.

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.