April 12th, 2016 Watch-list
Evening traders! Strong rally for the market early in the day before it ended up forming lower lows and lower highs to close out the day in the negative. The DJIA closed down 20.55 points and the SPX closed down 5.61. The key moving forward will be if we can solidly break below the 20ma for the daily DJIA chart. We've flirted with it the past few days but have essentially remained right near it. If we do break the 20ma and close strongly below it, we may see the DJIA move down towards the 50ma on the daily chart. If we end up seeing a rally topside, the key resistance to watch is still the 18000 level for the DJIA. Both the daily and Weekly charts for the DJIA and SPX are below for review with key support and resistance labeled.
Current Below $20 Plays:
MNGA: We've essentially been seeing this one move sideways for the past week or so. Good to see that we were able to close above $1 despite the red day. For those who are in, have your stop loss locked in just in case this one does turn against us. As we've discussed, if it falls further we'll watch it in our second buy area. Hoping we can see a topside breakout. First key is to close above that $1.07 level, followed by $1.10.
AHT: This one came right above our buy range, but did not fall far enough for us. Appears to be seeing a reversal topside at this point. As we discussed in the initial breakdown, chasing this one above our defined range was risky simply because so much resistance was near buy. We'll keep this one on watch going forward for when it ultimately settles down to us. Patience is key.
SDOW/SPXS: Both of these charts, just like the overall market, have been moving essentially sideways for the past few days. If we do finally see the market come down, these will run. It's that simple. For those who are in from the previous buy signal on the 23rd of March , honor your initial stop. For those who have taken an entry down in this level, lock in your 1/2 Stop loss. A good initial profit target in my opinion from this level for SDOW is $17.50, and for SPXS, $16.70. Set your stops accordingly.
New Above $20 Play to Watch:
DLTR: We began watching this one a few weeks ago, but it ended up reversing and not settling down enough for us. We're starting to see it come down again, so we're adding it back to watch. Indicators still show room to fall. We will not chase this one if it reverses above our rough buy range. Patience. If we break below $78 we'll go through and do a full chart breakdown and label our specific strategy. Begin to watch moving forward.
New Below $20 Play:
NLS: Very high risk. We've played this one before. Tends to see very strong swings in both directions, so understand the extreme risk before entering. Rough buy range labeled in the chart below. Being extra picky on this one simply because I want as much as possible in our favor, and that MFI is a little too high for my liking. Want to see it settle down a bit. This is a great one to add to watch if it does happen to run without us. Has a nice bounce area formed that could lead to multiple plays. Is a support reversal play. Full chart breakdown in tomorrows video watch-list. We want to see this one settle further for us, so we may put ourselves in a situation where it ends up running without us. Again, with the risk involved, I want as much as possible in our favor so being extra picky.