Sideways Market Movement
Inside day for the market, all of today's price action was contained within the body of yesterdays candle. Typically a sign that the slow grind will continue. No rip roaring rally after these new all time highs. Seeing tomorrow is Halloween and the end of the month, baring any unforeseen new event, the market should trade status quo.
There is still a chance for the market to pull back to the 20EMA on the SPY. The cycle we are in is due for some consolidation before we move higher.
VIX (Volitility) also an inside day here, no new low, no new high. There is a small uptrend forming on the daily chart. Will keep watching for a trade opportunity on fear related products. For now I would avoid trading any VIX product, there will be a lot of chop.
FCX (Freeport) Weakness continues, 200d EMA at 13.56, will watch for trade opportunity in the coming days.
CHK (Chesapeake) HOT WATCH here, price closed just under 20d EMA, There is a potential for both a long or a short from here. I will be watching for any close above $3.84 to go long, target will be over $4.00, this name does have a decent amount of negative new lately but I am strictly looking at technicals for this trade.
AMD (Advanced Micro Devices) BOUNCE PLAY, I entered today for a bounce play above $10.50 support level. This has considerable risk. I believe in buying when there is blood in the streets, even if it is my own. Stop below $10.50. If this support fails, I will be looking for pivot at $10 level.
SNAP (snapchat) what a strong trade alert this has shaped up to. Price here needs to remain above $15.55 for strength to continue in the near term. We are above the current channel here. if she can remain above there is a chance we can retest $17 area.
TOP watch for this week and tomorrow;
$MRNS(red day BUT low of day at 20d EMA where she bounced. uptrend remains, higher high, lower high. could be a potential long will be watching for signal to enter.)
$NGL (consolidation, next leg up comming? not sure price needs to hold above $11.18)
$IMGN (nice uptrend on the 5 min chart. nice volume at close, will watch at open)
$QBAK (not the best set up, still potential for squeeze but not touching yet.)
$HTGM (Still long @ $2.62, wedge forming, not the best probability set up. risking -.23/share here)
$MGTI (hammer on daily, possible short signal. look for comfirmation)
Low float tickers to watch $IZEA (keep close eye here, based on our live stream information), $NETE, $SKLN, $TNDM, $ATOS, $TEUM (no real set ups here, just watching based on recent price aciton)
Low Float/Small Cap momentum-
Where did the momentum go? It looks to be cooling off at the moment. Not supprised, October has been strong. I would expect to see some momentum return on Thursday. Typically retail traders protect at both the end of a strong month and start of the following month. It is a sound idea for your mental state. No reason to ruin a great month or start one with a huge loss.
I will be looking for a "grinder" in the low float area to kick start the process again. Typically something like a $2 stock will move to $5 in a very slow grind all day. Once retail has a cushion to trade on aggression could pick up in November.
I will be watching closely for our community to see when or if momentum returns. Expect to still see moves in one or two strong tickers but not market wide like we have seen. Focus on the one or two highest volume low float movers each day. They will provide you with the best breakout/breakdown set up on 5 minute timeframes.
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.
Tomorrow is the final day of October, I am proud of every member of our community who has profited from our alerts and blog. If you are Green on the month and have solid gains, celebrate and enjoy a worthy moment, you are achieving something 90% of all retails traders can not do.
Enjoy the current rally and end the month strong. Relax and get ready for November, do not chase. Do not hurt your current state of mind by taking a loss on the final day of the month. The market will be here for years to come. Relax and enjoy our accomplishments. I can not stress how important it is to protect your state of mind and remain in control of your emotions. Remember the market is not something to "beat". The only thing keeping you from sustainable trading is your state of mind.
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.