Energy, Oil, Natty Gas, SPY

MONEY MONDAY! 11/6/17

 

Energy Leading The Way

Overall Market-

Monday RIPPING higher SPY moved in a solid direction all day nearly closing at HOD, only a small pull back before close.

Oil prices surged to two-year highs today on rising tensions in the Middle East following a wave of arrests in Saudi Arabia and a missile attack on Riyadh by Yemeni rebels. The concern here is output will be impacted; as such the global market will have rising demand on lower supply.

Speaking from a charting perspective, very bullish price action today. Bulls in full control. We will need a MAJOR news event to shake this sentiment.

The only fly in the ointment this week is Tax Bill; Senator Cornyn says finance committee may release on Thursday.

VIX (Volitility) Inside day, very little movement for such a strong market day. We are near historical lows. Will continue to watch for a strong spike and great trade opportunity.

FCX (Freeport) with oil and natural gas running a muck its not surprising to see most major players in the space rally. FCX crossing into bullish territory with today's move.

CHK  (Chesapeake) what an incredible recovery today, volume was exceptional. Alerted a long for swing members at $3.90 for break of $4.00. Great strength today. Solid consolidation in the $4.10 area. So long as money stays in energy sector rally should continue.

XLE (SPDR Sector energy) I typically avoid SPDR of any type on the blog simply because they are really buy and hold tools. However, the move today in this index is MAJOR, breaking out of long term resistance, we could see strong moves in all energy related stocks in the coming weeks. keep this in mind for potential dip buy opportunity.

AMD  (Advanced Micro Devices) Gap up, news about a team up between AMD and INTEL to battle Nvidia... Perhaps the gap was too large and not enough strength to move higher; chart showing an ugly bearish hammer. Sitting right at the 200dEMA. Will need large buyers to hold up price. I will be short bias here to fill the gap and confirm support $10.75. However, she may just take off from here and never look back. Do not fight momentum and volume here. When she picks a direction go with the flow here. Big money will choose direction on this name, not retail.

SNAP (snapchat) Range bound into earnings. I will be looking to short if earnings are bad, this name is already beaten badly and losing steam. Lets keep a close watch.

 

TOP watch for this week and tomorrow;

  • $MRNS(update: call was correct, breakout ovet $6.50. very bullish close. next major resistance $7.75 on daily chart. Look to scale position and take some profits. move is a bit exhausted from $5.00 level)
  • $NGL (trading horribly even with Natty gas recovery. may table.)
  • $IMGN (DJOI - there are two major signals here; a bullish move with targets between $7.00-$8.50, and a short for targets between $4.75-$4.00. The trend is down, I will look for a short signal to confirm entry. Would prefer if this setup was cleaner.)
  • $QBAK - at wedge support. closing right on the wedge $8.11 level. retracing all of the breakout move. Looking sloppy now. This set up is most likely over without volume.
  • $HTGM (No change: will continue to watch for breakout play above $2.60 level, trend is up, just choppy)
  • $MGTI (I am short here. Looking for a flush tomorrow under 200dEMA, if we do not flush I am closing, if we flush I am closing... I do not hold short positions for long. typically 1-3 days.)


Low float tickers to watch
pay close attention to all squeeze candidates, we have seen several strong squeezes recently.

  • $PYDS (very choppy, most likely over here, shorts looking in control. )

 

  • $HMNY BREAKOUT! - high alert. former runner squeezing. scalp opportunity here.

 

  • $IZEA (breaking down, watching support level $3)
  • $SKLN ($2 is developing strong resistance, trend is still long here, careful with any short squeeze)
  • $ATOS (removing from list, broken any pop from here is strictly news, technicals are broken)
  • $MSDI (Still on alert: watch for space between 50dEMA and 200dEMA for squeeze)
  • $INFI (micro channel breakout) need to find support at $2.50 to enter (watch for continuation)
  • $ONCS (sill on alert: weekly and daily charts with volume watching for squeeze)
  • $LBIX (removing)

Low Float/Small Cap momentum-

Bulk Shippers on watch AGAIN.

TOPS showing strength afterhours. GLBS strenght after hours.

DRYS bouncing perfect off $4.21 support and strength into close.

ESEA, DCIX, SHIP, SINO

 

Great strength today and strong moves again. Only hiccup in today's momentum were the halts that came out. Fortunately price and momentum recovered but chop for about 10 minutes price action was dangerous for those who traded during that time.

I believe DCIX is exhausted, price is too high for retail to buy large blocks of shares. This decreases volume.

At the second half of the day volume and money was rotating into the lower priced names in this sector. I believe that was the reason for strength in $TOPS, $DRYS & $GLBS

I will be watching these lower priced names for a stronger trade opportunity.

Our note below is of importance, please use caution when trading tickers moving so quickly without material news. Get in and get out if you are using large size. If you plan on trying to grind these out, use smaller size and reduce your exposure.

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:

We got our signal Today; Broader market rocket ship, Momentum still strong.

No reason to fight the trend here, find the volume, target a valid set up and enter.

I have been using 5 minute breakout setups to great effect. Targeting support levels to enter when price pulls back. Giving very clear defined risk and allowing volume to work in my favor.

If you miss a move, as I have done many times in these last few weeks, do you best not to chase. The biggest thing you can do wrong here buy an overextend position because you are angry you missed the move or are afraid of missing profits.

Do not let FOMO (fear of missing out) control your trading. There will be other opportunity, pratice diciplne and literlly sit on your hands if you must!


Keep this close to your mind while trading... Do not worry about capturing all of these lighting moves, you only need a portion of a large move to make a profit. Do not worry about "leaving money on the table"; no one ever went broke taking a profit!

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.