Eight Week Winning Streak... Broken!
Mounting concerns is the best way to describe what is happening in price action. Using futures price action we can see that the speculators are selling pre-market yet the big money is stepping in to prop up the market during open hours.
Friday volume between selling and buying was mostly a stalemate. This could signal a round of consolidation and chop in the markets until we receive actionable news on issues weighing on the markets.
I will never attempt to guess or call top in any market, that is well beyond my realm of expertise. So long as we remain above the 50d EMA on the SPY, I will remain bullish on price action.
VIX (Volitility) VIX long is now one of my TOP WATCH plays. We are closed right at 200dEMA, I will be looking to trade TVIX & UVXY. These will be scalp plays. If for some reason I do swing here, it will be on small size no more than 500 shares and based on some news or pending event with substantial weight on the overall market.
FCX (Freeport) Friday selling my customary 1/3 position into resistance at $15. Thankful I stuck to my trade plan here. Price sold off. Stopped breakeven on remaining shares. Will be watching $14.27 level for support and long opportunity here. be mindful we are under 20 and 50 EMA's. Long term support $13.84+-, this a critical level. prolonged action under that level would signal bears to fire at will.
CHK (Chesapeake) Half positon on here, price needs to close above $4.20 as we are building some resistance in this level. Be mindful this is a large cap, if the market is rolling over this will most likely follow suite. Support $3.96+- area.
XLE (SPDR Sector energy) update, still strong here. Like all energy plays right now.
AMD (Advanced Micro Devices) Gap closed. looking to buy above $10.75 level. Would love to see price action stay above $11. That would provide a good base to move higher.
update: BZ reporting 1 million shares accumulated at $11.26 level. Watch for price to stay above this level to enter for a long trade. stop would need to be at $10.50 to allow price action to play out, be mindful of this when sizing as risk is upwards of $.75/share
SNAP (snapchat) $12.24 support. I am short bias here. That said, chart is showing strength for a potential bounce type move. Fib retrace 23.5% at $13.25, 38.2% $13.95. these will be potential shorts I will watch for. If you are long bias on SNAP, there is a chance to see profits in the short term.
TOP watch for this week and tomorrow;
- $MRNS(Update: congratulations to any longs here, you are in control. Support now $7.33 level. Watch above $8 for sign of continued strength. Breakout and squeeze here is above $8.25 for potential to test pre-market levels $9+ )
- $NGL (CUP AND HANDLE daily chart, finally after two weeks of watch. Breakout in progress. Long term trend reversal possible here, will need to move over 200dEMA $13.38 for true reversal. Gap to be filled above $18 level. )
- $IMGN (BREAK OUT! top watch here. intraday support $6.10, continuation over $6.35)
- $QBAK - (up almost 3 points from our first mentions. STRONG volume friday. trend continues. I own 200 shares here at $9. stop under $8.11 wedge form)
- $HTGM (chart is a disaster. price all over the place. really hard to trade with conviction. still looking for squeeze, if you see volume here above $2.60, potential momentum play.)
- $MGTI (failed breakout, looks like shorts are still in control here. 200dEMA $1.71, wedge forming on daily.)
Trend Ticker Watch List
pay close attention to all squeeze candidates, we have seen several strong squeezes recently.
- $PYDS (potential long above $2.83, watch for volume.)
- $HMNY - chop city. Watch for volume and move over $11 spot.)
- $IZEA (breakout potential over $4.30, like potential stop under $4)
- $SKLN (Ugly, earnings this week. no position, will watch after news.)
- $MSDI (earnings this week. no position.)
- $INFI (uptrend remains. looking to long if volume increases. Support $2.08 )
- $ONCS (breakout potential, loving this ticker. Breakout over $2.50 if possible. Nice strong pivitos on daily. price action clearly defined. Need price to hold $2.20 level for entry. support $1.80)
Hot watch for market 11/13/17 (low float plays)
All Therapeutic Stocks on watch for Monday, volume alert in sector detected.
- CAPR (previous swing play. Former runner. Daily chart curling. Support 1 $2.14, support 2 $2.40, watch for squeeze potential.)
- MTBC (potential bounce and reversal here, resistance $2.75, would like to see price hold above $2.50 for entry on volume.)
- CREG (support $5 critical to hold. china play, watch for volume and be fast.)
- CRTN (high risk penny, earnings 11/13. use caution.)
- RLOG (earnings 11/14, previous squeeze, new higher base. volume scalp only)
- KBSF ("support" i use the term loosely on this one. $5.20, careful here, moves FAST)
- IDXG (earnings 11/13, chart showing typical rising price into report. watch for results)
- LBIX (Bouncing off 200d EMA, if volume steps in shes off to the races.)
- TNDM (curling off all time lows, squeeze and gap fill potential here.)
- CLSN (End of day volume spike and price squeeze. on watch for continuation)
Low Float/Small Cap momentum-
Keep shippers on watch still mometum is dying in those names but we could have one last bow before they go back to sleep for 6 months. Also Chinese and therapeutic stocks, volume detected in both areas.
Monday can be hit or miss in momentum, play safe. Don't chase. Buy for breakouts and stop at logical levels. Use proper size to keep risk at minimum. Pre-market action will be signal for strength.
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.
As is typical for Monday; do your best to build a cushion of profits to trade from. Starting the week with a huge gain or huge loss will impact how you trade for the remainder of the week. Take profits on winners and cut losses quickly. One or two winning trades on a Monday can give you the confidence you will need to carry momentum through the week.
I will be watching both the hot watch list as well as VIX related for signals and trades.
I just wanted to say thank you to all of our members. I truly appreciate the feedback and helping our students grow.
Good luck team, Remain humble and hungry!
Disclaimer: We are not responsible for losses for any reason. We are just an investing club here, seek financial advise from a professional before acting on any of this information. This information is strictly my opinion and what i am seeing in the market. The information above is not a trade recommendation to buy or sell. 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.