May 6th, 2016 Watch-list
Evening traders! Essentially an even day for the market after spending portions of the day in the red and the green. Doji candle overall on the DJIA daily chart. We appear to be finding some support right near that 50sma like we had talked about. Daily indicators are starting to let off a little steam after being topped out for so long. Weekly chart is still fairly topped out however. That doesn't mean we can't see a short term pop off this 50sma. We'll see how we close tomorrow and evaluate going into the weekend. May be time to begin looking towards some above $20 plays if we do begin to form a base of support here. If not, we'll watch that daily 200sma as the next potential bounce area. Daily chart for both the DJIA and SPX below with key support and resistance labeled.
Current Below $20 Plays:
KNDI: This is one we've been watching for some time. As we've discussed, has earnings the 10th of May so if you decide to take the risk and enter on a buy signal, plan to be out before that date. We'll most likely keep this one on watch through that date to see how it reacts and adjust for a potential entry post earnings.
FRAN: We're seeing this one test the lower end of our buy range. If we end up continuing to fall, we'll most likely remove this one from watch until is settles down closer to the $14-$15 level. If we can see it start to reverse here however, would still be a good entry. Remember, this one tends to give false buys, so don't chase on an initial push upward. If you see a daily buy, watch the 15min and wait for a pullback, higher low to form, then look to spot your entry so long as the daily buy is still intact.
GIG: Nothing new here. Still seeing it settle in buy range and waiting for buy signal.
MDXG: Finally seeing this one start to appear ready to move topside. We're seeing 3/4 indicators clearly curing up. If you took an entry, make sure to have your 1/2 stop loss set. Tomorrow is key for this one to get the momentum it needs to move higher. A strong close to the week could set this one up to move towards our target early next week. If we close red, we may see it continue to move lower.
ACRX: Nothing new here. Still seeing this one settle in our buy range. Waiting for green day and 3/4 buy signal to take entry.
Current Above $20 Plays:
TZA: For those who are still in this one and using a 3% trailing stop loss, or utilizing the 20ma as a stop, another strong move on this one today! Indicators are starting to get near their overbought levels so if you're still in, look to lock in profit to close out the week. Great overall trade here!