January 27th, 2016 Watch-list

Evening Traders! Strong move today for the overall market with the DJIA gaining 282 points and the S&P 500 gaining 26.55. It appears the rally we had talked about is still intact. On the 1 hour DJIA chart we finally saw a higher high form along with the higher low from yesterday. As I previously mentioned however, I am not putting too much into this reversal longer term and will be watching to add SPXS, SDOW, and so forth to watch in the coming days if we see the market continue to run so we can take advantage of the next pullback. Both the DJIA and S&P 500 charts are below with support/resistance levels labeled. Not many ideal trade set-ups at this time with the recent back and forth action the past few days. Like I mentioned yesterday the main focus, until we see a clear trend form, will be on ETF's which have either a direct or inverse correlation to the market.

Current Below $20 Plays:

BDN: We're seeing 4/4 indicators clearly curving up at this point. Nice 2.27% gain today. Next key break is the $12.72 high set on the 19th. We almost tested it today but failed. At this point have your stop loss moved up to your break even price, or at-least within 2% of it to reduce risk. Want to see this one hold above $12.16 if we do see a pullback. We're seeing a solid uptrend occurring on the 15 min chart as well currently. Higher highs and higher lows.


Current Above $20 Plays:

CHD: 4/4 indicators curving up after the move today of 1.08%. Nice to see it re-break and close above $80. Next key break is that $81.32 high set on the 22nd. Would be ideal to see this one continue to hold above $80 at this point. Have your stop loss moved up to at-least your break even price to reduce risk.


KO: One of the few stocks finishing in red today as we failed again to break and close above that 50ma. Again, due to the fact most all missed the entry on this one since it ran above our buy range, hopefully we can eventually see it resettle back down to us. For those in, that 50ma is still the key break going forward.



VMC: Solid 1.62% gain on this one today, recovering from the pullback yesterday. Many have already exited on the previous run upward. For those still in, next key step is to move into the $85 range. Have your stop loss moved up to your break even price to reduce risk.


As we've been talking, quality over quantity is the name of the game at this point. We don't want to throw our money into anything that moves. Still looking to add 1 or 2 new below $20 plays this week along with some key ETF's to take advantage of the next market pullback. We're slowly easing our way back into it since we're starting to see some clear trends form. Our current ETF's we've been targeting, URE/DRN, SDOW/UPRO have been performing well. Hopefully we can get a similar result on the next pullback with some inverse ETF's. As usual, if you have any questions, let me know!