New month, New Gains

Wednesday 11/1/17

 

Red Doji on the Daily for the SPY

Overall Market-

All time highs again, this train never ends... or will it? Alon Rosin says we are headed lower into the end of 2017. Putting money behind his words, he is taking a bearish options spread against the market.

Fed leaves rates unchanged, this is historically good for equities as it creates more value in stocks and less in the yield on bonds. Just my personal opinion on this, as equity prices continue to rise, they are now more expensive than anytime in history, at some point this advantage will price it self out.

SPY with a red day but still maintaining an up day. Status quo continues.

VIX (Volitility) remains stable currently 10.20, down trend remains.

FCX (Freeport) gap up on news realease, I still techincally believe in a short here, the daily chart is UGLY. I will not be touching with the current pattern. Today was higher volume red day and a very large candle of indecision.  Not willing to play guess the direction here.

CHK  (Chesapeake) I opened a small position on this today. only 200 shares. Earnings will be released before market. If earnings are strong this bounce could gain some steam up to $4.40 level. However if ER is a miss, this may be the straw that breaks the $3.50 long term support. If that is the case, I will look to reverse position and go short.

AMD  (Advanced Micro Devices) BOUNCE PLAY, watching to see if this level continues to holds. No real candlestick pattern to trade here. I am long bias and feel this move is largly over done. Will re enter long if we continue to close above $10.80

SNAP (snapchat) BZ news: Seeing Notable Block Trade In Snap; 1.7M Shares At $14.60; This is in the area of our previous swing alert. I will be watching to see if $14.50 level holds. potential for continued uptrend off September lows.

 

TOP watch for this week and tomorrow;

  • $MRNS(strong day, possible long at support)
  • $NGL (showing potential for short after yesterdays DOJI, watching for a break of the 50&20dEMA's)
  • $IMGN (this set up broke down very quickly. No entry, earnings is close, may table this ticker for now)
  • $QBAK (uptrend continues, volume still way to low to justify trading. Feels like a breakout is close)
  • $HTGM (News after hours, spike to high of $2.47, with the recent up trend and djoi that formed today during market hours, this one is on high alert over $2.50 for a long move and retest of the 200dEMA, this is a strong set up so long as momentum is to the long site at open.)
  • $MGTI (hammer on daily, possible short signal. look for comfirmation, update, price below $2.00 is a short, with a tight stop. look to test 200dEMA)


Low float tickers to watch

  • $PYDS (keep on watch for a possible scalp as it breaks $3.00 level)
  • $HMNY (keep this on watch for now. I will be looking for a long if volume and momentum exist. I will only be taking a trade if price is above the 200EMA on the 5 min time frame.)
  • $IZEA (Spike on Volume, no news, up after hours. This was on watch since Sunday due to daily set up. There is potential for a major squeeze here, just use caution this is a breakout scalp type trade, entry's will be based strictly on tomorrows price action)
  • $SKLN (Gaps up on news today, price held well at $2.00 level, strop trade opportunity tomorrow, resistance is $2.20, support $2.00)
  • $ATOS (not a great set up here, still watching as $0.40 level continues to build support), $TEUM,$NETE,$TNDM (holding support, possible double bottom. watch for gap fill opportunity if she starts to move.)

Low Float/Small Cap momentum-

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Momentum is still here LBIX takes the throne for today. Strong move, former running and great trade opportunity.

We are heading into our 5th week of low float runners, this has been an incredible time for gains. Do not fight the market, go with the flow and follow the volume until things change.

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:

November starts with a bang! overall market news and sentiment remain bullish for now. Capitalize on this momentum into thanksgiving holiday. I will be looking to seize the opportunity by sizing up on some of these low floats as the strength is very high.
 

Keep emotions in check and be realistic about your account gains, 5% per day is a massive amount when compounding over a longer period of time. Recently this has been possible, but try not to get greedy. One bad trade can wipe out weeks or months of gains. No matter how well you have been trading, keep yourself in check.

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.