Strong Momentum

Thursday 11/16/17

 

Rebound

sp swing

Overall Market-

Off to the races at the bell today. Tax Reform Bill receiving a leg up today and the market responds with a clear bullish move. There are still bears screaming top but ignore all noise. We can still wake up to a massive sell off if some earth shaking event happens with Korea or Tax Reform. I will not allow fear of an event stop my long term positions.

Bullish market is still very much alive and intact. Futures are holding level after hours. We will see new all time highs before end of the end of the month? I believe that is a very strong possibility. Trend is our friend. Lots of people making loads of money, this will not be easily stopped.


VIX (Volitility) volatility absolutely hammered today. I did not take any trades here. Inverse volatility had a very strong gain.

NVDA Price target upgraded here long term buying opportunity. This is too high for me to trade, I do not trade stocks at this price level. Disclaimer: I do own NVDA in my IRA as a long term buy/hold.

FCX (Freeport) Price action here consolidating. Watching for support to hold along 200dEMA.

CHK  (Chesapeake) Weakness continues, still holding $3.80 stop.

XLE (SPDR Sector energy) Continued weakness. Watching for sector rotation.

AMD  (Advanced Micro Devices) Alerted here at $10.90 (11/15/17), stop $10.50, RSI showing some divergence. long term swing here. Will continue to hold. Waiting for daily RSI to cross midline to confirm price recovery.

SNAP (snapchat) $12.30 level is holding here. No signal to buy or sell from here. I will continue to wait for a play. There is money to be made here but I will not trade until I see a signal to trade from.

 

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

TOP watch for this week and tomorrow;

  • $NGL (stopped, very small win here, energy is getting killed right now., removing from list)
  • $IMGN (Correction, I was wrong here. Gap filled, breakout possible still above $6.30)
  • $MGTI (removing, to much risk for reward here, no real set up)
  • QBAK (sloppy and choppy, will watch for potential entry at lower level on trend line.)


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

  • $PYDS (breakdown here. Removing from list, bearish candle, will not short.)
  • $HMNY - (This play is turning into a real nice trade, $12 spot held well and retest of $13.50 today, I traded this today for the break over $12.50, scalped $.037/share, 1k size. quick trade.)
  • $INFI (Bought 500 shares today at $1.90, risk $.25/share, swinging here. )
  • $ONCS (play is breaking down a bit, needs some heavy consolidation)

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

 

 

  • SORL (completely broken set up. Gap remains open, potential to buy after gap filled.)
  • MARK (Nice grind here again, I did not trade but it made a nice clean move, sell off at end of day. )
  • VERI (gap down and great price action grinding all day higher.)
  • CAPR (no trade for me. needs additional consolidation.)
  • LBIX (price grinding higher, I did not buy, chance for a pop here, RSI holding midline as we curl.)
  • TNDM ($2.50 support held, no volume. potential for low size swing. Risk is $0.50/share. use caution may, Will gain interest over $3.00 and volume.)

 WPCS (I bought this today in the Robinhood Ultra Low cash account. entry price $1.60),

 

Low Float/Small Cap momentum-

Micro floats are squeezing fast, halting on the way up and the way down. The only way to find and trade these is with a market scanner. I have not traded any of these in the last two days. There has been loads of money to be made, however, the risk for me on these names is just to high to justify entry.

Use caution and try not to chase this sector. I know its fun to day dream about a massive run, but these plays require incredible speed and accuracy. If you do trade them, make sure position size is small and you are very quick with you platform.

Perceptibly hotkeys should be used when trading things this fast. Robinhood or other slow brokers are a recipe for disaster as price can change literally in seconds.

Do not get greedy, especially now. I saw two people today blow up their accounts on social media chasing these plays. Live to trade another day.


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:

Great recovery in the overall market today. I will be looking for value plays in large caps to capitalize on some of this pull back. 

Momentum is HOT, I will trade previous runners only and at smart levels for quick in and out. I will not look to hold for long.

Profit is profit. Lock it and move on. Compounding over time is far more important than a few home runs.

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.