August 22nd, 2016 Watch-list
Evening traders! So overall we saw the market close down and the DJIA down 23.90 points last week. We're still seeing a very bearish picture on the weekly chart and also to a degree on the daily chart as well. The lack of strong consistent peaks and valleys has made things difficult for us the past month or so (very similar to last August in fact). This is often a common occurrence in the summer months, so as we move into September and October I expect things to really pick up for us! Over the next few weeks we'll be looking to put out a new Elite Video every week or so and really focus in on ramping up the educational aspect of the service. Not only that but we'll be looking to feature a lot more student requests as well. The main point of the watch-list really is to break down, in video form, many of the trades you guys are watching. So we'll be looking to ramp that up going forward! Below you will find the daily chart for the DJIA, followed by analysis of all current plays and two new plays at the very end.
Current Below $20 Plays:
FRO: As we talked about last week, I expect us to watch this one through earnings (Aug 30th) before getting an entry. So with that said, we'll go ahead and mention this one here and there, but won't really focus in until earnings pass.
EGO: With GDX and gold taking a step back Friday, we're seeing a lot of the gold and gold mining stocks settle down for us like we've been hoping. With GDX now below the 20sma, we want to see it settle down a day or two more for us and get near that 50sma. That's the area we'll look to target a reversal in a few gold stocks/ETF's.
TRQ: Frustrating back and forth action with this one. After the strong move Thursday, we came right back down Friday. Make sure to have stops set around $2.98 in my opinion.
Current Above $20 Plays:
EXR: Unfortunately this one simply did not work out for us. Was promising initially, but turned against us. Most all should be out with their protective stops hit. We haven't seen success like in the past with many of the traditional above $20 plays, so I think we'll wait for a healthy market pullback before targeting more above $20 plays.
DWTI: Still watching this one for an entry. Looking to see it settle in this level. Keep on watch.
DF: We're seeing this one enter a really solid level of support where we've seen it reverse multiple times. Definitely some potential as we see it settle down in this level. Potential buy range labeled below with some of my thoughts as well!
New Play Added to Watch:
RIC: Another gold stock added to watch here, like we've been discussing. With Gold coming down, we'll probably look to add maybe 1 more stock or ETF to watch to provide more opportunity to take advantage of a Gold reversal in the coming days. We'll look to see if Gold can fall for another day or so before going in and doing complete breakdowns on GDX, EGO, and now RIC.