Massive Mid Week Update

1-24-18

Overall Market-

Market continues its steady climb after some morning weakness with the Dow Jones Industrial Average slipping from another record high as Wall Street digested quarterly results from component stocks Johnson & Johnson (JNJ), Proctor & Gamble (PG), Travelers (TRV) and Verizon (VZ).

Nasdaq continues to rally, lead by Netflix (NFLX) after the company's Q4 profit and sales grew significantly from a year ago.

President Trump's imposition of steep tariffs on imported washing machines and solar products had initially sparked concerns from investors that the action would ignite a deeper trade war with China, Japan and South Korea, and, in turn, open the door to further tariffs against products from North America and Europe.

Like most concerns in this market they are quickly met by a buying frenzy of bulls. Expect this trend to continue until the next talk of government shutdown in three weeks.

 

 

VIX (Volatility) volatility at an acceptable level for trading. Continue to keep this on watch. 

NVDA (Nvidia corp) Price new all time highs, trend continues. Look to buy a pull back to a 13dEMA or 20dEMA

AMD (Advanced Micro Devices) Strong trend continues, price threatening to push into gap, this is a strong trade for bulls to close the gap before bears can potentially. earnings on 1/30/18

SOXX (Semiconductor ETF long) Trend Continues

 

XLE (SPDR Sector energy) Small pull back on daily, trend remains full on bulls here.

FCX (Freeport) Heavy over head resistance continues to hold at $20 price level. Watching for a pull back and buying opportunity here in the coming weeks or days. earnings 1/25/18

CHK  (Chesapeake) Price action here holding above $4.00, yesterdays trading mirrored the SPY perfectly. This indicates that CHK is now trading with the market. 

MRO (Marathon Oil) Strong bullish action continues. Will be a buyer here at $18.00 on a solid pull back to the 20dEMA.

SLB (Schlumberger LTD) Trailing stop in place here, let this continue to work. Price action stalling at $80. Potential pull back and opportunity to add coming.

Natural Gas (FEB 18 contract): Futures on a breakout after a solid flag and consolidation. Will look to enter short potentially for speculative inventory play, similar to last week. 

 

SNAP (snapchat) Short position on this name remains active on final 1/3 position. I remain bearish on this name in the long term. Should price action close or gain strength above $14.50 bulls will have control again. Stop is in place on final shares at $14.80

 

Swing Positions (Details are intentionally vague, in respect of paying swing subscribers)

  • $IMGN final shares running, great entry from $6.00 price
  • $SNAP Short (in profit, final shares stop is just above break even.)
  • $DSW Long (breakout setup over current levels)
  • $MBOT Long (speculative play, strong entry and managed risk, let it trade)
  • $CYCC Long (speculative play, good volume) 

Robinhood Challenge: Positions on CYCC  & MBOT

 

Low float watchlist plays

  • TNDM (Update 1/10/18 - sold 1/2 position $3.15, stop break-even on remaining shares. great trade here, now holding 3k shares.)
  • PIXY this ticker was alerted on the swing service last week for an entry at $3.30, order was not filled. Price is now trading and grinding well. Keep on watch for a squeeze. Pull back opportunity on yesterdays price action.
  • VTGN on watch for a potential squeeze as we curl up to test 200dEMA.
  • GALT forming a flag on daily in this consolidation, on watch for breakout.
  • DRNA breaking out, long term bullish trend, on watch for entry.
  • REXX potential bottom, on watch for trend reversal.

 

BITCOIN/CRYPTO

Blockchain frenzy has died down in the past week or so. Former names can not be traded with more traditional indicatiors as irrational buying cools off, names to keep on long term watch $GROW, $TEUM, $SRAX, $RIOT, $MARA, $DPW, $XNET

 

Fire watchlist for market day 1/24/18

  • RGSE (solar play based on tariff)
  • FSLR (solar play based on tariff)
  • HMNY (gaining traction, volume, price over $10.00 for short squeeze potential)
  • OPTT (squeeze potential)
  • INSY (bounce set up)

Low Float/Small Cap momentum-

Momentum remains strong over the past few trading sessions. Continue to trade momentum with confidence as no weakness is slowing down retail gains.

Of note in yesterdays trading was HMNY, strong grinder all day on a bullish trend. Expect today's action in this name to invite some volatility and great trading opportunity.


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:

I will be working to update the blog in a fashion that will provide a more comprehensive look at profitable sections of the market. My goal is to keep the blog clean and easy to read on a mobile device while eating breakfast. 

I hope this blog has provided you with value of the last months and I want to say thank you to all our students, it is a joy to watch our traders grow and change their lives for good.

The market continues to show incredible strength and is providing an extended period of prosperity for most participants. Be wary that some big time bulls are sitting on the sideline waiting to crush this rally. we are in desperate need of a real pull back, just be mindful and try to avoid complacently. 

The one thing that can hurt even the most seasoned traders is getting to comfortable, over sizing or taking these amazing gains for granted. Try to always remain hungry and humble. 

Thank you again, lets go team! 

 

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 may 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.