December 1st, 2016 Watch-list
Evening traders! Another mixed day for the market with the DJIA going up and setting a new high before coming down to close the day up only 1.98 points. We've seen the overall market stall out a bit the last 4 days. Hopefully this is a sign that the bulls no longer have confidence in a push higher and the bears are ready to take over. Below you will find the DJIA daily chart with key support and resistance labeled. Below that you will find some thoughts on all current plays.
Current Plays On Watch:
SDOW: We do have a buy signal intact on this one at this point on the daily chart, however we still closed in the red for the day (generally I only want to take entries when we are green for the day). Keep a close eye on this one tomorrow if looking to secure an entry!
LABD: This one has already hit our initial target and appears to be making a move towards our second target of $17.50. For those who are still in, consider moving your stop loss up to $13.95 at this point to reduce risk. Next key break, $17 followed by $17.11.
VIX/VXX: We started to see VIX make a move today which is great. If we can see this one up above those 3 SMA's in the $14-$15 level, I think we'll see it make its way up towards $16. As for VXX, this one tends to lag a bit behind VIX. We did see a small green day today. For those in, lets look to target $29.95 initially.
SPY/SPXS/SPXU: We started to see SPY make a downward move today which was great for those who took positions in just puts for SPY or who did the spread trade we discussed. Remember, if we can manage to close below 218 by next Wednesday, we'll get max profit on this spread trade. For those who did not trade the options and targeted instead either SPXS or SPXU, both saw decent green days today. SPY is currently showing a sell signal, and both SPXS and SPXU are showing buy signals. For those in, as long as we see SPY continue to fall, both SPXS and SPXU will run.