December 15th, 2016 Watch-list
Evening traders! So today we saw the market rally a bit following the big drop yesterday. We've seen the SPX rally back up above the 1900 level and the DJIA has been able to hold that 15942.37 support level. The main question is, was this a one day pop or the start of a move topside? Tomorrow is going to be important in determining that in my opinion. If we can see a strong close to the week and close positive, both the weekly charts for the DJIA and SPX will have been positive for this week following the big red candles from last week. Despite all of this, it does appear (outside of some major rally) that we are in bear market territory until the chart shows us otherwise longer term. Both the daily and weekly charts for the DJIA and SPX are below with important support and resistance levels labeled.
As for our current plays, many saw moves topside today as the market saw a nice run. We had talked about being cautious though and potentially waiting to see a second day of confirmation before entering to avoid jumping in on a 1 day pop. Some of you may have entered today on the buy signal and some may be waiting for further confirmation. Keep that in mind as we go through and break these charts down. I'll discuss the next key breaks we want to see and the key support levels we want to see each chart hold and you can cater that to the strategy you are implementing at this time.
Current Below $20 Plays
ELNK: We saw this one come right down to the bottom end of our buy range and actually briefly break below that key $6 support price. It did see a rally however intra-day and closed up 3.15% for the day. We are seeing at this point 2/4 indicators clearly curving off bottom and the Slow Sto slightly curving up. If in, next key break is the $6.51 high set on the 13th. Key support we want to see it hold is $6. Adjust the initial target to $6.85, followed by the 20ma. Adjust your stop accordingly if in.
IDRA: We discussed this one last night as a potential high risk trade. Previously it did not work out for us so lets learn from the past and make sure to go in a little smaller capital wise, honor our stop, and take profit when given. Chart below with key support and resistance.
Current Above $20 Plays:
CHD: We're seeing this one work down into our new buy range following the last move. Would like to see the MFI settle down a bit more. Keep an eye on those indicators going forward.
AER: We're seeing the indicators slightly work their way up after the move today. Could merely be a 1 day pop so lets see what tomorrow brings. Next key break $38.36. Key support, $34.80. Chart below.
KO: Not much new on this chart. Still waiting to see it settle down into our buy range. Keep on watch.
VMC: Nice 2.11% move on this one day. Did make an entry difficult however with the upper end of our buy range near the reversal point. If we can see it resettle down could provide another entry opportunity.