New all time highs... and then trouble?
Today's market turned negative at session's half after hitting record highs in early trading, as tax reform debate in Congress and fresh geopolitical risks in the Middle East rekindle mutters among the bears.
Geopolitical worries resurfaced in the Middle East as the fallout from the "Saudi purge" this weekend continued, as well as concerns a war would erupt between Saudi Arabia and Iran.
Crude and natural gas up. US oil and gold down. I can't help but feel this type of sell off is a bit overdone on speculative news. Will keep a close eye on the market if any substantial news is released. There is a very strong short trade opportunity in e-mini futures when a selloff happens, simply based on how much room we have down to critical moving averages. Not calling a top here by any means, just ready for short term short opportunity if it presents.
VIX (Volitility) Up today, no alarming spike. Will be looking at 11 on the VIX for panic trade and short term leveraged ETF scalp.
FCX (Freeport) Inside daily candle, watch for breakout over $14.65 level. Do not like this chart enough to swing. To much chop.
CHK (Chesapeake) Still holding long here, no sell signal. As stated before, I really like the weekly chart here, hammer followed by djoi, this week is very bullish. We need continued consolidation above $4.10 for strength. I am targeting $4.40 as profit zone. lets see how we do.
XLE (SPDR Sector energy) watching this to keep an eye on energy plays. no position or intention of trading.
AMD (Advanced Micro Devices) two very confusing daily candles. I don't think anyone, including big money has a clue what this is worth right now. Technically, I see a huge gap that needs filling. Will remain short bias until that gap is filled. I would love to see our lower gap fill and a real rally gain legs here. I really like what AMD is doing but this chart is getting very sloppy. Gap above and below current price. hands off for me.
SNAP (snapchat) Not that this play was terribly difficult to see coming but some poor fools got crushed after hours today. I would not be surprised if this price were to test all time low in the coming days. With the size of the fall out here, i would guess a bounce at some point in early trading. If bounce plays are your thing. Keep a close eye on this one tomorrow.
TOP watch for this week and tomorrow;
- $MRNS(update: building support at $6.60 which is good for continued bullish action. the close below $6.80 looks a little weak. Any long is risking $.40/share from here. Too much for me. Will wait to see if a pull back is in the cards.)
- $NGL (Conference call set this on fire, bulls in control above $12.50)
- $IMGN (more bearish but still holding and building support - 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. volume keeps falling here but price is holding well. Still watching for the day she squeezes 2-4 points.
- $HTGM (FINALLY!!!! only took two weeks...... after hours news here, will watch for a squeeze potential) hot watch here. Strong support at $2.60 level. This one can go. so just be mindful of chasing.
- $MGTI (Got my flush, covered $1.65. earnings 11/9, no way in heck will I ever hold short a low float into earnings... I might be dumb but I sure ain't that stupid. )
Low float tickers to watch
pay close attention to all squeeze candidates, we have seen several strong squeezes recently.
- $PYDS (Update: shorts in control as called, bounced at $2.60, chance for a flush under that support if she breaks. However if she holds support watch for volume and pop.)
- $HMNY BREAKOUT! - update: decent trade today at $12.50 level. Price selling off but closing just under $12.00, don't count this one out yet. Consolidiaiton at this level may mean next leg up!)
- $IZEA (reported at close, up after hours. I am still very interested in the gap above $5 here. on watch for breakout over $4.38)
- $SKLN (closed at 20dEMA, no position. on watch)
- $MSDI (Still on alert: watch for space between 50dEMA and 200dEMA for squeeze)
- $INFI (nasty PR, good recovery, bullish hammer. still worth watching here)
- $ONCS (sill on alert: weekly and daily charts with volume watching for squeeze)
HOT watch for 11/8/17 (all based on today's price action) use caution and trade fast.
- NSPR, after house pop. low volume
- NAO (shipper)
- RLOG (shipper/logistic)
- GSL (shipper)
Low Float/Small Cap momentum-
Bulk Shippers slowing but logistic names now moving, see above.
As emailed this morning also keep an eye on Chinese stocks. They do similar to shipper sector and will often move days or a week after shippers dry up.
Momentum is still strong, but make sure to be looking in the right place.
Retail is spending one or two days, squeezing plays in a sector and then moving on. If you see movement in a sector look for sister plays and confirm strength. Enter at smart areas and be quick.
I will continue to watch all shippers but do not focus to heavily on them you may miss a scalp elsewhere.
There have been a few halts in the last two trading sessions, that means price is getting especially out of control. Use caution when trading around halted stocks, espically if you are not fimilar with the volitility after reopen.
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.
Continue to trade smart, this is an incredible period of momentum over 6 weeks now of non stop gains. Do not get greedy. compound your accounts, take your gains, move on to the next play.
Continue to find and follow the trends, 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.