January 12th, 2017 Watch-list
Hey traders! We're seeing the overall market in a sideways channel/consolidation phase at this point. Remember, consolidation phases serve as breathing points for investors and traders. There is indecision on whether to continue to drive the price up or down. It's almost like 1 big doji candle. We'll have to wait and see what the market decides to do. The daily indicators for the DJIA are still a little high, and the weekly chart is nice and topped out leading me to believe a pullback is coming in the next week or so. But, as we talked about, this market has a mind of its own so let's be cautious with our approach! Daily chart for the DJIA is below for review.
Current Plays on Watch:
SDOW: For those in SDOW you may notice something different price wise tomorrow morning when the market opens. SDOW had a 1;4 reverse split, which essentially means that you will see an increase in the price of SDOW, and a decrease in the number of shares you hold. The following table shows the effect of a hypothetical 1-for-4 reverse split:
| Period | # of Shares Owned | Hypothetical Price | Total Value of Shares | ||||||
| Pre-Split | 1,000 | $10.00 | $10,000.00 | ||||||
| Post-Split | 250 | $40.00 | $10,000.00 | ||||||
As you can see, the total value of your shares did not change. Just wanted to make sure everyone was aware of the situation before market open tomorrow! Overall, not much new on this one as it continues to move sideways as the DJIA is stalled out topside. At this point SDOW is serving more as a hedge to our other trades incase the market pulls back hard.
AMRS: We've seen this one hit and break our initial target and begin to appear ready to retrace a bit. All should be out of this trade for profit at this point from what we discussed yesterday. Great job to those who traded!
UAA: This one has already broken our initial profit target, providing those in with profit opportunity. If you happen to still be in with all or a portion of your position, we've been moving sideways the past few days and are seeing those daily indicators begin to turn downward. Not only that but we posted a potential hanging man candle today as well. So, if in hoping to see another push higher, have your stop loss, at a minimum, moved to your break even price to reduce risk!
OCLR: Small red day today for this open position. Watching that 15 minute chart to see if we can start to trend higher again! For those in, have your 1/2 R/R ratio stops set.
AREX: Still waiting for this one to enter our buy range. Like I mentioned yesterday, there is the risk that this one does just like QTM and reverses without us, but I'd rather be picky and get a more favorable entry than pin ourselves so close to resistance points. Once we break below $3 we'll start to zero in more on this trade.
