July 5th, 2016 Watch-list
Hey traders! Interesting week last week with the market making back what it gave up following the Brexit. Moving forward, I still feel fairly bearish despite the strong rally. The market is getting right up near key resistance in the 18,000 to 18,200 range and other markets across the globe are still struggling. With that said, we'll be looking to target some inverse market ETF's early this week. If we can see the market turn down, there should be some opportunity there! Below you will find the daily chart for the DJIA with key support and resistance labeled for you. Below that will be a breakdown of all current plays plus our new plays to watch!
Current Below $20 Plays:
SGMO: Interesting play here. We did get a daily buy signal, but did not also get a 15 minute buy signal so I know many of you passed on this one. Overall it did see a solid move. This is one we will most likely add to watch going forward since it does have such a solid support level.
DGAZ: Despite us being stopped out of this one already, I still feel there is some potential here. Definitely is higher risk at this point. We are entering another level of support however making this a potential support reversal play. Chart below with details!
TVIX: This one is coming right down to the bottom end of our labeled support range. Indicators are also looking pretty close to giving a reversal, though the MFI is a little higher than I would prefer. As we discussed in the initial breakdown, my main fear is this one reverts back to the descending support trend-line it was following previously. With that said, we are right in a previous bounce point. Keep an eye on those indicators. This would be another great one to apply the 15 minute technique on as well.
GDX/DUST: GDX continued to push higher late last week as many investors still looked to Gold as a potential safe haven in case the market continues to fall. This play could almost serve as a hedge to other inverse ETF plays since more often than not it moves inverse of the market. This is one I will absolutely be looking to apply the 15 minute technique to before entering since it does move so rapidly. Want to avoid getting in on a false buy if possible. Remember, we need to see a daily 3/4 sell signal on GDX before we take an entry in DUST.
New Plays Added to Watch:
SPXU/SDOW: With the DJIA and SPX charts being topped out technically, there is some potential that we begin to see the market turn against us at some point this coming week. Either of these plays can serve as great options to take advantage of a market swing to the downside. Remember, both plays will move essentially in unison, so do not enter both! Treat both as above $20 plays and look to target a 3%-7% move. Charts attached below with details!