May 8th, 2017 Watch-list
Hey Traders! We saw the market make a topside move Friday with the DJIA closing up 55.47 points. As we discussed in the week in review video posted, we are still seeing the DJIA essentially consolidate the last 9 days. A break above the 21,070.90 high could signal another strong push topside is coming. A break down below the 50sma and 20sma could signal a bearish move down towards the mid 20k level. Daily chart below with key support and resistance labeled for review.
Current Stocks/ETF's on Watch:
NUGT: This one ended up dipping below our buy range on Thursday, then managed to rally back into our buy range on Friday. At this point we do have the daily buy signal intact with the price within our buy range. Looking at the 15 minute chart, you can see we had the strong push out of the gate before we finally saw a minor pullback. We did form a small higher low around $29.38, and heading into the close a small 15 minute buy was given as well. I know some of you passed on grabbing entries due to the fact you don't like to enter late on Fridays, but even with that in mind, keep a close eye on it Monday. We may be able to receive another 15 minute buy signal on this one. If in, have your 1/2 R/R ratio stop loss set. Adjustments made to profit targets. Chart below for review.
UWT/USO: We saw these two take a dip Friday out of our labeled buy range. At this point we're going to go ahead and remove them from watch. I know some of you grabbed entries utilizing option strategies and regular shares Friday using your own strategies. The main reason I'm removing these from watch for now isn't because I don't think we can see a reversal here. It's more so because I don't want to spread our risk too thin with targeting these two and NUGT. I'd rather wait and see how USO performs in the coming days. If we settle down a little further, we'll be positioned in a more favorable reversal point for a potential entry.
New Stocks/ETF's Added to Watch:
UFS: We talked about this one in the market review video. Really like how it is settling down into a previous reversal point and down towards a short term ascending support line. Indicators are getting down near reversal points as well which is a good sign. We have a few opportunities to target this one. If we can get a reversal in the labeled buy range below, great. If it does settle lower however, we can look to target this one in the mid $36 and potentially mid $35 level if it falls even further. Chart below with technical breakdown and buy criteria, stop loss strategy, and profit targets.