March 3rd, 2016 Watch-list
Evening traders! Mixed day for the overall market with the DJIA ultimately closing up 34 points after spending much of the day in the red and the SPX closing up a small 8 points. Daily charts for both moving further into or close to their overbought levels. We're starting to see the weekly charts get near and cross above their mid level points indicator wise. Key level resistance wise I'll be focusing on for the DJIA is the 17000 level. That may act as a strong point of resistance in the coming days. Both the daily and weekly charts for the DJIA and SPX are below for review.
Current Below $20 Plays:
MNGA: Another solid day for this one. Has now hit our first target (and technically second since the 50ma is now at $1.33) providing profit opportunity for many. Next key break is that 50ma at $1.33. If we get a solid break of that tomorrow, we could see a move into the high $1.30s. All who are still in, I'd recommend kicking in a 5-7% trailing stop to reduce risk. we're up about 15% at this point since the original buy day. Chart below for review.
XXII: Another solid topside move for this trade. Many of you are not in this trade due to the fact it did reverse slightly above our buy range. For those that are in however, look to lock in profit on the way up. We went right up to the 20ma and 200ma today. Those will act as the next key resistance breaks at this point. If we can break them, we could see $1.10. All who are in, have your stop loss moved up to your break even price. For those who did not take an entry, keep this chart on watch for a pullback down into our buy range again.
Strategy for the remaining portion of this week:
Going forward we'll still be watching KO, SPG, and NKTR as potential plays. Once the market settles back down, we'll look to pick them up off bottom. As mentioned yesterday I'll be looking to grow our list of stocks on watch in the coming days. Today we're going to add AIV as a new potential above $20 play. This is another one that will need time to settle down since it has seen a strong topside run with the overall market. With the market being extended, we have to start building a solid list of stocks in clear patterns that will serve as good plays with a market pullback. Complete chart breakdown with overall strategy below for AIV.
AIV Notes: Looking to this one as a potential support reversal play. Is starting to get slightly overextended on the chart at this point. This one tends to move fairly well with the overall market, so with the market starting to also get overextended, this could serve as a solid play once the market settles back down. Initially we'll need to see this one come down and break the 3 moving averages directly below the current price (50ma, followed by the 200ma, then the 20ma). Once within our buy range, we'll need a 3/4 buy signal before we take an entry. We'll continue to make adjusts to this chart once we begin seeing a pullback, including adding our profit target. Jumping on this one early so we're fully prepared once the market comes down.