May 19th, 2016 Watch-list
Evening traders! Lot's of action today for the overall market with the Fed minutes coming out and indicating that a June rate hike is likely which is a bearish signal overall. Early the DJIA was up strong before falling over 200 points intra-day after the Fed release. Ultimately, the DJIA closed essentially even for the day. We're still holding below that 50sma on the daily chart. Weekly chart still bearish overall. DJIA daily chart below for review with key support and resistance labeled.
Current Below $20 Plays:
ACRX: Nothing new on this one. We've moved basically sideways the past 3 days. Next key break is the 20sma currently at $3.30. Hoping to see this one hold above $3 if we do see a pullback.
ARAY: Starting to see this one slip back into our buy range as we've been discussing. Again, still hoping this one will resettle and provide an opportunity for a better entry price. If it does resettle for us, we will treat it just like we were initially and wait for the 3/4 buy signal.
BAS: Still haven't received an entry on this one yet. Sitting right in the middle section of our buy range. We've been seeing lower lows and lower highs form on the 15min chart. I'll continue to watch the smaller time frames to see if we can get them to start trending upward, which will then lead to a buy signal on the daily chart. Being extra picky on this high risk/high reward trade.
CLF: Protective stop loss hit on this trade today at $2.90. Still going to watch however since it is still within our buy range. If we can get it to settle and give a second buy signal, I'll look to take another entry potentially. This trade is very similar to BAS in the fact that it is higher risk/higher reward. Look to go in small. For example, if you have a $5k account and usually go in each trade with $1250, consider cutting that back to $750 for example. By limiting your trade size, you reduce your overall capital risk. Just an idea to consider.
BLDP: Nothing new here. Still waiting to see if we can get this one to settle down into our labeled buy range for us. Keep on watch going forward.
Current Above $20 Plays on Watch:
GME: Earnings are the 26th of May for this one, so personally I will not be looking to trade until after earnings (if the pattern still holds). For those who are in, look to be out before that date. I'm hoping we can see this one hold this level through earnings for us. If not, we'll move on from this chart.