December 14th, 2015 Watch-list
Evening traders! Interesting close to the week on Friday with the DJIA pulling back 309 points and the S&P 500 coming down roughly 40 points. We saw the SPX break through two key support levels and the DJIA come right down near a key support price level (labeled in green below). It appears as if we are going down and setting a shorter term lower low on the daily charts. Watch to see if the DJIA can come down and close below that 17210 price support to confirm the lower low. In the meantime we'll start to watch some of the key ETF's that track both the DJIA and S&P 500 to look to take advantage of a topside reversal after the downtrend ends. Expect those to be added to watch this week. For both the DJIA and SPX key support levels, refer to chart below (green lines).
Current Below $20 Plays:
CLNE: This chart gave an initial buy signal a few days back. Did come back a bit Friday with the overall market as energy did suffer. Remember, this play is very high risk so have your stop loss set in place! Want to see this one get some buying momentum back to pull the indicators back into a buy.
ZIOP: Seeing this one work down into our buy range, next key is to receive that 3/4 buy signal with the indicators before we take an entry. We're starting to see the MACD histogram work it's way up, black MACD line should soon follow. Keep on watch!
NCT: Right at the upper end of our buy range. Want to see it come down a little further and specifically that Slow Stochastic work its way down a bit more. Very wide buy range essentially representing two potential bounce areas, so make sure to wait for a clear 3/4 buy signal before entering. Need a few more days here.
ELNK: Saw this one come down and fall right through our buy range. Has essentially broken that longer term ascending support level. I've went ahead and made adjustments to the buy range and slight adjustments to the overall chart for you to review. Remember, we need price to be within our buy range and a 3/4 buy signal to be given before we take and entry!
Current Above $20 Plays:
SPG: One of our potential longer term position trades here. As we've discussed, want to see it continue to fall and come down to us more before we enter. Do not chase this one. Takes patience sometimes on these longer term plays but you absolutely want to get the best entry possible. If it runs without us, we'll simply re-adjust our chart and wait for it to retrace again.
EXPD: Nothing new since Fridays market update, which read as follows, "This one appeared as if it was set to reverse yesterday. I had mentioned I was hoping to see it retrace back down for us so there would be a better entry opportunity. May be doing that so watching to see if we can see it settle a bit into our buy range and re-give us a buy."
KHC: Has now moved within our buy range. Being a little more picky and placing our buy range lower than last time appears to have paid off. Next step is to receive that 3/4 buy signal. Chart below.
New Below $20 Play:
BYD: We watched this one in the past, but it never completely came down all the way to us. Has since re-set and has some potential for a solid short term swing set-up. Blue lines represent the longer term support and resistance trend lines. We don't want to see the price fall too far below that support line or the trend will no longer be intact. Buy range labeled with black lines. Need to see price within our buy range and a 3/4 buy signal given before we take an entry. Initial profit target the 50ma, second target $20. Stop loss, maintain a 1/2 R/R Ratio.
