December 30th, 2016 Watch-list
Evening traders! The last two days we've seen the market begin to turn downward, which is what we have been hoping to see for some time. We're finally starting to see those daily indicators for the DJIA and SPY let off a little steam. The 20sma for both charts however is right under the current level and appears to be acting as an area of support to be aware of. If we can break the 20sma for the DJIA, we could see it start to trend down towards the 19,000 level. Ideally I would love to see a nice healthy market pullback to allow us to position ourselves in more plays early in January. We'll see how far this pullback goes! Daily chart for the DJIA and SPY are below with key support and resistance labeled for review.
Current Plays on Watch:
SDOW: With the DJIA pulling back the past two days, we've seen a decent move in SDOW. This one isn't going to be a massive mover and should be treated more like an above $20 play in terms of profit target (3%-7%). Adjustments have been made to the profit target below, so if in make sure to review. If the market continues to fall, this one will rally higher.
SPXS: Just like SDOW, with the market taking a step back the past two days, this one has, as a result, moved higher. Hopefully we can see another solid red day for the market tomorrow and we can get this one up near our initial target early next week!
AMRS: Ever since the hammer candle that formed on the 23rd, we've seen this one start to slowly trend higher. However, it is having some difficulty breaking above the 20sma. That is going to be the key break, in my opinion, that will make this one move into the $0.80's. We need a break and close above the 20sma. If in, make sure you have your stop loss set and locked in place, and your profit target also automated as well!
QTM: Looking at the chart for this one, the current level seems like a good area to enter. We've seen the price pullback and consolidate, and we have the daily indicators curving up. With that in mind, it is a good area to enter! However, personally I want to be a little picky and see if we can maybe get a small dip down into our labeled buy range. If you want to trade it off the current level though, a good initial target would be $0.81, right below that descending 20sma. Chart below for review on our current strategy.
UAA: This is the new play we added to watch yesterday. Pretty simple setup and strategy here. UAA, in the eyes of many "experts", is undervalued and a good candidate for a move topside early 2017. Not only that but we do have a pretty nice technical set-up in this current level. Does that mean it is a guarantee to move higher? No. But I like the probability on this one to make a move in January into the $30's. Chart below for review with strategies for those looking to swing trade, and those looking to position for a long term move. The entry criteria is the same for both.