August 15th, 2016 Watch-list
Evening traders! Interesting week last week as we trended back up towards that 18622 high and briefly broke it for the DJIA. Overall for the week, we gained 32.94 points. Going forward, I still have a bearish outlook when it comes to the next 2-3 weeks, but as we've discussed it is possible to see rally's higher on the daily chart during a bearish longer term pullback. DJIA daily chart is getting back to being topped out, so let's start watching for a pullback in the next 4-6 days. Could be smart to target SDOW and SPXU again for potential plays. As we always discuss for these two, you treat them just like any other reversal play and look for the 3/4 buy signal (I'd also recommend the 15 minute technique as well). We do have a key decision this week regarding the Fed and the potential interest rate hike. We'll have to watch closely to see what decision comes out. DJIA daily chart below with key support and resistance. As for our current plays:
Current Below $20 Plays:
FRO: Still waiting for this one to settle back down to us. We've jumped on it early due to the fact it has produced some great reversals, so let's wait patiently for the pullback. Earnings Aug 31st.
EGO: Still watching this one closely to see if we can get it to breakdown and come towards that 200sma. I really want to be on the long side of Gold, but I want to see a pullback first. If we can get gold to come back for us, we'll look to target a few stocks and ETFs that will put us on the long side of gold going forward, such as EGO.
TRQ: After seeing the solid move on Thursday, this one settled back a bit Friday. Still sitting right in our buy range and the chart set-up is looking decent. Let's keep a close eye on this one Monday and Tuesday. If not in, you may receive an opportunity to get in due to the pullback. Next key break is going to be $3.21. After that, $3.27.
Current Above $20 Plays:
EXR: We saw a great move on this one early Friday before it came back down to close out the day. Still sitting right at the upper end of our buy range. Next key break $85.12. After that, we should see a move towards the $86 range.