March 2nd, 2017 Watch-list
Hey traders! Big green day for the markets as traders and investors responded well to President Trumps speech to congress yesterday. We saw the DJIA positioned for a pullback, but a catalyst like a presidential speech to congress always has the potential to move the market up or down. Overall we saw the DJIA gain 303.31 points! This market seems to never run out of steam! Reality is it eventually will however and we want to make sure we're not caught holding the bag when it does! So we'll remain as neutral as possible to the market and work to not get too overextended in too many plays at once. DJIA daily chart below with key support and resistance labeled.
Current Open Positions:
CVM: This one hit our initial target yesterday and many of you opted to exit for profit. Some of you however did hold and the recommendation was to move your stop loss to break even. Well unfortunately today this one saw an initial gap down to $0.0912, which would have caused your stops to execute for a loss. That is a prime example of why a play like this is high risk/high reward. It's an unfortunate situation for those who did not exit initially for profit, but that's the risk you take when holding such a risky play. Many other times it will pay off and you'll be walking away with a bigger win. It'll go both ways and you have to be ok with that. An important aspect of trading is accepting the results of each trade you make, both good and bad.
Current Stocks/ETF's on Watch:
UFS: Some positive movement on this one early as we gapped up at the open of the day. At this point we do have a 3/4 daily buy signal. However, we are still waiting for the 15 minute buy signal to form on a higher low. Keep on watch. Remember, you want the price to be positive for the day. I generally do not enter on black candle days.
New Stocks/ETF's Added to Watch:
LC: We're seeing this one settle down to a solid level of support and a previous bounce point. Need to see it fall a little further at this point. Really simple support reversal trade. Need to see price within buy range, a 3/4 daily buy signal, and a 15 minute buy signal in unison before entering. Chart below with additional details! The two risk factors with this trade are we do have a longer term ugly downtrend, and we are making an exception here with regards to our 5 year trading history rule.
ANTH: This is a very risky trade idea here for those who are looking to make a play that could potentially see a move intra-day right towards our target. As you can see by looking at the chart below, this is a very ugly chart technically speaking. We have the big gap down which adds some serious risk on our end. With that said though we do have a potential shorter term ascending triangle breakout, and a potential gap breakout if we can break above $0.78. The goal would be, if we see $0.78 break and appear on the bid, to enter at the ask of roughly $0.79 (no higher than $0.80) for a quick move towards the mid to low $0.80's. We'll keep a real tight stop of $0.77 in case we get a false breakout. If we break our initial target and you want to try and ride it higher I'd move your stop up to break even. If we hit our second target and you want to ride it higher i'd kick in a 3 cent trailing stop intra-day hoping to see it ride higher, but make sure to exit before the close and lock in profit. Hopefully if we do break $0.78 we see some momentum come in to drive the price higher. What I would do is simply set an alert with stockcharts or your broker to send you a text or email when the price hits $0.77, that way you know to start prepping for an entry in this one if you are interested in trading it. Chart below for review. Remember, the indicators have no significance on this trade.