After hours power!

Wednesday 11/9/17

 

Incredible strength continues into afterhours

Overall Market-

BUY THE F*cking DIP! Middle east fears? Tax Bill delay? Fears of $1.5T to budget deficit? North Korea tensions?... yet the market continues to act as those these topics either do not exist or perhaps a head in the sand mentality is pervasive given the amount of money being made in the market.

My thesis here remains unchanged. Baring some tangible news, status quo.

After hours trading is showing another round of expansion is on deck. Futures point to new all time highs. Are we once again back into "morning dip buy, rally into close" we experienced in much of September and October? It looks to be the case for now. Nearly any buy after low of day is proving to be a profitable one.

VIX (Volitility) remaining under all major moving averages. I am watching this very closely, when we turn the corner there will be great opportunity here.

FCX (Freeport) Strong move today. Very nice move over resistance. Options buying here as well. Looking for a swing entry. Hindsight should have entered at $14.63 but never the less. Can't live in the past.

CHK  (Chesapeake) Scaled position today. Stop second half at $3.90, not willing to over stay welcome. Will add back if we gain strength again over $4.10

XLE (SPDR Sector energy) $69 is level to watch here. Just a reference index for energy.

AMD  (Advanced Micro Devices) Short driving lower, closing below support. I am still short bias, mostly out of a need to see this gap filled. I want to enter long and swing this but the gap needs to fill.

SNAP (snapchat) Massive volume today, second only to its day of IPO. I will continue to watch this name for an RSI level under 25. If we can test all time low in coming days with an RSI into oversold, I will then look to swing long. Until then there is a lot of trading opportunity and two strong pivots established from today's price action. It looks like $12.93 resistance and $12.20 support for now. Will watch for a trade tomorrow of these levels. Please note there is news here but I do not pretend to understand what some overseas company holding a 10% stake will do to price action. I simply trade price action.

 

TOP watch for this week and tomorrow;

  • $MRNS(update: Now this is a setup I can get behind. Today was good the the chart, LOD just above psychological $6.50 level, pricing with strong consolidation. Looking for a swing and chance to retest $7+)
  • $NGL (Bulls having trouble with the $12.50 spot, need to control that level for move higher)
  • $IMGN (Update: at least my confusion here is being confirmed by very indecisive price action. Split signals still remain here. Not willing to guess, needs a signal for direction.)
  • $QBAK - Grinding here continues. I may grab very small size here. 100 shares and hold with a stop at $7.00, This keeps grinding up. personally the risk for me $200 is worth a shot if she squeezes upside $12+
  • $HTGM (still watching here, I have a hard time letting go of squeeze potential here.)
  • $MGTI (classic volume into new play. I stopped rolling the dice on these long ago. To hard to control risk. I am very glad I closed short position yesterday though. Watch this tomorrow for some opportunity.)


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

  • $PYDS (Update: Nice bounce off $2.50 and strong above $2.60, I did not trade this but support is building. lets keep this on watch, continued consolidation here is great for earnings next week, potential play on news.)
  • $HMNY - will continue to watch strictly based on previous price action. Just looking very weak.
  • $IZEA (bounce off $4.00 level. like that strength. watching)
  • $SKLN (tabled, earnings 11/13 this one is shot for now)
  • $MSDI (Update: Solid gold. Anyone who took or entered this trade should be sitting on +30-50%. I am very partial to plays with space between 50d and 200d ema's and have traded them dozens of times to great effect. Risk reward on them is typically in favor. up after hours as well, watch for play tomorrow.)
  • $INFI (Moving averages crossing. Are we seeing the start of a bullish movement? there is a gap in the weekly chart, we need more volume here.)
  • $ONCS (Update: We have a winner, up on news in pre-market, great trade opportunity's today. volume singals were the clue here for the last two weeks. price action must remain above $2.00 for bulls)

 

Low Float/Small Cap momentum-

Bulk Shippers still on watch but faded today.

Momentum is starting to shift into pre-market hours, and I HATE when that happens. I will not trade pre-market. Often times the price movements in pre-market exhaust and over extend prices. This is due to liquidity typically being low. Once the market opens price is so overextended shorts take control and the sell of begins. If this continues for long enough, it will kill opening range breakouts very quickly, as most traders lose confidence to step in and buy at open after getting burned several times.

Momentum is still alive but in very concentrated areas, look and find the volume each day. I feel we may be seeing the end of this momentum cycle, it is beginning to show signs of overstaying its welcome.

Do not give up all hope, just have a laser focus on whatever scanner you use.

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. 


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:

Keep with the flow again. Find what is working and do not be afraid to trade.

Focus on locking in profits. Momentum is not just something in the market. As a trader you can build a winning streak into a winning week, winning month, winning quarter and winning year. Do not underestimate the power of small gains over time.

If you can pull $100 a day out of the market you will acquire $25,000 out of the market in a year. That is enough to help change your life if you learn money management. If you can take $100 a day, it only takes larger size for $200, and so on, until you are reliably making $500+ a day from the market.

Your long term goals begin with what you do tomorrow. Be realisic and do not forget just how much oppertuity we have as traders to truly grow our wealth. No matter where you are today in your trade journey, in 12 months it will look dramatically different than it looks to you today.

After 10 years in the market, I can honestly say, what I thought being a trader meant has changed dramatically. To me it means one thing, true freedom. Do not give up on your goals, do not become a victim to your own fear/greed.

Small wins are just as important as home runs.

 

Everyday in every way I’m getting better and better. Day by day.  ~Emile Coue

The beauty of this phrase is that it implies that:

  • there are improvements taking place in your life right now,
  • that these will continue to take place into the future,
  • and that these improvements will happen in every area of your life.

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.