Low Float Squeeze!!

Wednesday 11/15/17

 

Momentum out of control!

 

Overall Market-

Opening bell with huge volume and a sizable dip, very quickly bought up. Still closing down -0.50%.

Chart is looking very chopping and starting to roll over a bit. Some serious issues weighing on the market, Korea and China, Tax Bill, and retail data.

SPY Price action testing critical 255 level

 



VIX (Volitility) volitilty squeeze is on, looking for a run as tensions for the market mount.

NVDA Price action now following market. Large caps are all presenting buying opportunity.

FCX (Freeport) Price dipping hard at open, building support at $13.60 level. energy is weak right now, will watch for swing and rotation into this sector.

CHK  (Chesapeake) Showing weakness, still holding till stop. Energy sector is very weak.

XLE (SPDR Sector energy) this chart basically mirrors the above tickers. Dip buying opportunity forming in energy.

AMD  (Advanced Micro Devices) Alerted here at $10.90, stop $10.50, RSI showing some divergence. long term swing here.

SNAP (snapchat) $12.30 level is holding here. No signal to buy or sell from here. I will continue to wait for a play.

 

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

TOP watch for this week and tomorrow;

  • $MRNS(no play for me, this looks over for now.)
  • $NGL (stopped, very small win here, energy is getting killed right now.)
  • $IMGN (failed breakout, removing from list.)
  • $MGTI (no change. 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 (recovery and back above wedge. This was a great dip buying oppertuntiy. unfortunatly I did buy this too high, no position for me. uptrend is still largly intact here.)


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 - ($11 held perfect, great grind today. on watch for run tomorrow.)
  • $INFI (Will enter tomorrow on small size. Risk upwards of  $0.30/share, low probability set up.)
  • $ONCS ($2.20 support tested again, holding for now. looking weak. I would like to swing this but we need more consolidaiton)

updated watch  11/15/17 (low float plays)

 

 

  • SORL (unfortunate sell off at open killed momo here, nice consolidaiton between $7 & $7.50, will look to trade this tomorrow on those levels. Clear pivots in price action.)
  • MARK (morning sell of here again, killing momo, recovery and grind, great move today.)
  • VERI (gap down and great price action girnding all day higher.)
  • RLOG (typical penny action here, spike and sell off. no play for me here.)
  • JAGX (dump happened here, no play.)
  • CAPR (Support here $2.50, like this play due to previous price action. needs volume for any potential trade.)
  • LBIX (Missed my $1.60 called entry. great spike after that. still on watch here. may still buy.)
  • TNDM ($2.50 support. no technical bounce. play on hold. )

 WPCS (will look to enter for possible trend reversal. Stop $1.35 level),

 

Low Float/Small Cap momentum-

ULTRA LOW FLOATS ALERT, today was out of control in micro float stocks. Squeeze is coming fast and hard. top names today $LEDS, $CHFS, $LMFA,

all of the above names on watch for continuation. adding WPCS to alert list here. potential on this name to move FAST.

Micro float stocks are now top watch, these are typically stocks with less than 4 million shares available to trade. WPCS and LEDS are two favorites for me to watch. Use extreme caution with these plays. They will typically halt on both moves up and moves down. Spreads can also be an issue with these. Size accordingly.

Gap plays are showing weakness again. I will not be buying opening range breakouts. I will look for pull back to support levels to trade.

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:

Roll over? perhaps but until that is proven I will look to trade volatility before betting against the bull market.

Make sure if you are trading this fast momentum names you are using stops and understand the risk of each trade before entering. These can move very quick so being able to calculate risk just as quick is key to risk management.

Keep an eye out for any significant news event that can shift the market. I will look to size up on TVIX or UVXY if bearish news is realeased. 

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.