$GE anchor

Tuesday 11/13/17

 

Energy dragging market

 

Overall Market-

Market selling off hard at the open before a strong pairing of early losses. Yet another sell-off in shares of General Electric (GE) coupled with accelerating inflation and heavy losses in the energy sector kept the SPY from closing green.

The energy sector is also underwater after an International Energy Agency report warned of slowing demand growth due to high prices and as warm weather overshadowed supply disruptions from the Middle East and OPEC production cuts.

Oil prices recently peaked and pulled back. Will the overall market and Oil begin to correlate and bring the market lower? Is there a potential to see a repeat of January 2016? Only time will tell if any of the recent fears are founded.

SPY session closing -.60 (0.23%), after hours selling continues, futures point down. Weekly chart on the SPY is over extended and indicators showing overbought. Daily starting to roll over a bit. Looking for continued weakness until we get some of these concerns cleared up. Tax Bill being the largest at the moment.



VIX (Volitility) VIX continue to move higher. High alert on all volatility related on watch for direction of market and trade opportunity.

FCX (Freeport) Chart signal was correct, coupled with energy weakness, this was a strong short. Price closed above 200dEMA. Nice consolidation $13.60 area. Will watch for a recovery and long opportunity.

CHK  (Chesapeake) Trimmed size here, sold 750 shares at $4, holding remaining shares with stop $3.80. Sell off today was following energy sector. Will look for a dip buy opportunity.

XLE (SPDR Sector energy) Major sell off here, price back in long term channel.

AMD  (Advanced Micro Devices) Continued heavy buying in this name BZ reporting another large block at $11.05, I will look to buy seeing price holding well. Risk here is still $10.50 level on long term swing.

SNAP (snapchat) $12.24 support held nearly perfect, chart is strong for bounce. Will not touch I am just to bearish on this name to trade with a clear mind. There is still potential here long, just not for me.

 

NOTE: Will be trimming list and removing dead plays this weekend.

TOP watch for this week and tomorrow;

  • $MRNS(Update: flush; breaking gap support and selling off to previous levels. $6.50 critical psychological support here.)
  • $NGL (Trimmed size here 2/3 remain on, stop break even at $12. Energy may destroy this opportunity before it gets legs. )
  • $IMGN (breakout potential forming here, close watch. $6.36 is critical level to close above for next leg.)
  • $MGTI (200dEMA continues holding on by a thread. support below this level is $1.50, a little close for risk/reward set up to short, still watching.)
  • QBAK (update: Took the Loss here, 200 shares. Very small size intentionally)


Trend Ticker Watch List
pay close attention to all squeeze candidates, we have seen several strong squeezes recently.

  • $PYDS (Curl/flag potential forming, keeping eye on this tight range and price action over $2.87.)
  • $HMNY - hitting $13.50 resistance perfect, great trade opportunity today. Potential trade off $11 level if we see volume and confirmation.)
  • $IZEA (no volume, sloppy daily candle, shorts may take over here down to 200dEMA)
  • $SKLN (watching price action tomorrow, below $1.40 and support is broken.)
  • $MSDI (removing, no setup here)
  • $INFI (bulls with minimal control here, weak candle, price must remain above $2.00 to enter for long swing. Risk upwards of  $0.30/share)
  • $ONCS (very quick scalp today for me. Price holding well. Watching for consolidation and potential leg up.)

Hot watch for market 11/14/17 (low float plays)

 Therapeutic Stocks continue on watch.

 

  • SORL (what a move on earnings, will watch for Squeeze here, shorts stacked on this one)
  • MARK (very strong price action today, on watch for continuation)
  • VERI (higher price, strong move, multi day runner here? possibly)
  • RLOG (news and erratic price action AH, penny play)
  • JAGX (high risk penny, social media Pump and Dump possible here.)
  • CAPR (Support here $2.50, like this play due to previous price action. needs volume for any potential trade.)
  • LBIX (I will look to open small size around $1.60, stop at $1.20, this is high risk.)
  • TNDM (UGLY day here, rejecting and continued price over $2.00, possible entry for long with risk $0.25/share, not best set up here.)

Updated: APTO (update, support $1.90, resistance $2.20, will look for trades off these levels); OPTT(no play, complete retrace of pop), WPCS (will look to enter for possible trend reversal. Stop $1.35 level), TEUM (update, removing, dumped hard.), ITUS (gapped up to hard to enter for long trade, will watch for re-entry.)

 

Low Float/Small Cap momentum-

Shippers showing very little life, low cap bio stocks are now momentum targets.

Momentum is slowly losing momentum... We are starting to see the classic signals that we are due for a rest period in the momo department. Morning Pump and Dumps (P&D) are showing up. This is horrible for day traders looking to "jump in" at the open and push price action higher.

Gap plays that do not sell off right away are spiking and very quickly selling off at resistances. Enough of these burns and retail quickly loses its taste for opening range breakouts.

There is still one or two very concentrated grind squeezes happening. It will be come harder to find these in the coming weeks unless we get some kind of reawakening in momo.

Do not get greedy, especially now, trading momentum requires MOMENTUM, do not chase or go looking for it. Either the market has it, or its gone. It will come back just be patient for now.


Momentum disclamer:
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:

Choppy price action in both large and small cap names. Lots of profits in the last 7 weeks of trading. We are overdue for a cool down period.

Manage expectations, respect your profits do not underestimate the power of taking consistent 5% gains on positions. They will add up, at the very least they will reduce your exposure and give you a boost in scratch trades or trimming losses in the long run.

I will be using tomorrow as a guage, if price aciton continues to sell off, I can see us entering a quite period until news is released. Make sure to have some dry powder to take advantage of oppertunity the market gives us.

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.