Continued Weakness

12/5/17

Mid week market

Overall Market-

SPY holding 264 price level before market selling continued through mid session.

No violent moves to cause a dip big enough to see buyers, just slow steady selling. Volume at session close was strong and bearish.

This is the kind of selling I would like to see for a few days. Allow the market to rest and pull back a bit before making a charge to years end. We have some less than stellar news regarding Tax Reform and North Korea is back mentioned regularly.

Continue to play safe on large cap swings. Buy and hold are still solid holds. No panic in market or heavy selling to start a sell off.

VIX (Volitility) (no change here) Should the current price action prevail and this wipsaw continue, I will switch to trading VIX related instruments. These are typically leveraged and can provide exceptional gains, just be mindful of risk with these. No VIX related instrument is intended to be a buy and hold, most are leveraged and include re-balancing (an awkward form of time decay unique to levered ETF's).

NVDA (Update 12/5/17 potential bounce at $180 level, need more price action to confirm. TIMBER... 20dEMA tested, on deck $151.96 (50dEMA), potential pivot support $169.29. Please keep in mind that no amount of techincals will save this name if smart money is done with this sector as seems to be the case. This may seem crazy but I can see a resting price here around $120, at which point. I would load the boat and come back in 5 years. (all extremism aside, keep on watch for bounce potential)

FCX (Freeport) (update) Stopped out here. Stop was probably too tight here but not willing to risk here as my entry was higher than I was looking for. In essence not the best trade here.

CHK  (Chesapeake) Update: $3.92 level key for new hold. xle

XLE (SPDR Sector energy) acceptable levels, potential pull back.

MRO (Marathon Oil) keep on watch until market picks a direction.


AMD  (Advanced Micro Devices) Bullish pin bar on daily chart. Potential reversal area, strong volume today. Signal to trend change, watching price action.

SNAP (snapchat) (Update 12/5/17 Great move on an updated price target, bulls in control. I am still foolishly bearish) Technicals here are showing move higher and potential breakout into gap zone. Any longs here have a strong position with defined risk. However,  I am far to bearish on this name to trade with a clear mind, I am sure I am would not be accurately perceiving market information on this and will avoid going long here. I will be looking to short at key fib levels.

Trend Watch

  • $IMGN Looking to add above $6.00 for next leg.
  • QBAK buyer here at $6.50, may never get the chance but looking at long term support to buy.
  • $HMNY - Sill looking for a long here,
  • $ONCS Doji , need volume for reversal.

Robinhood Challenge: DFFN still holding. Strong pop today on volume, daily chart heating up. As stated this is higher risk, could quickly breakdown to all time lows. Account value $285 at time of writing.

 

Low float watchlist plays

  • LBIX Update: (1,000 shares long $1.71) 3 red candles and a Doji here, I will enter tomorrow. I like this candle stick pattern. Provides a good defined risk. Stop $1.60. Update 12/4/17 (making a bad habit of almost getting stopped out on multiple set ups now. expecting to get stopped here tomorrow. assuming the loss is in on this one -$90)
  • TNDM  Update: Long signal here, be on watch for swing alert here. Ascending wedge. breaking 20dEMA with volume will be key for entry here. Eyeing $2.50 for swing entry.
  • EKSO Bulls in control, $2.59 is fib 61.8% (this will be key battle ground for price action)
  • EGLT update 12/4/17 ($1.31 level showing to be a real challenge here, will continue to watch) great price action here, looking for a long over $1.31 for a breakout here. update 11/27/17 price action holding well. high alert for breakout.

 

BITCOIN/CRYPTO

Major chop in price action on both bitcoin and the below names. Keep this on watch as bitcoin continues to grow strength.

  • GROW:
  • TEUM:
  • SRAX:
  • RIOT:
  • MARA:
  • DPW: (keep on close watch tomorrow)
  • XNET:

Hot watch list 12/6/17 (will update in morning before market open)

  • EYEG (volume, breakout alert)(may have one day left in this run, scalp potential)
  • MRDN (volume alert, no news)
  • DFFN (Former runner, disclosure I am long as of 11/29 on this name. volume alert)
  • DPW (short term trend and bullish volume)
  • CUR (continuation and short squeeze potential)
  • CLNT (breaking news, gap up with some pre-market volume)
  • CLRB (beaten down name, new and gap up pre-market, squeeze potential with volume)
  • EBIO (penny, volume alert former runner)
  • VSAR (volume, recent up trend, squeeze canidate)

 

Low Float/Small Cap momentum-

Some very strong moves today keeping momentum alive, PXS had an incredible bounce and halt, CUR with incredible strength and a great beat down name with squeeze potential. GLS holding up after morning spike.

Pop and Drops have stopped for now. This is great for opening range breakout plays.

Be sure to lock profits on these momentum plays, they seem to be breaking down quickly off highs. Very little time is given to lock in profits on these trades.

 


Momentum disclaimer:
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:

Two very strong trades for me today. Swing trades are choppy as the market is showing weakness. I will be position sizing smaller and giving trades more breathing room. Stops have been too tight for current market conditions.

Be sure to take profits when the market makes them avaiable.

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.