November 22nd, 2016 Watch-list
Hey traders! Small green day for the market today as we saw the DJIA gain roughly 88 points. We were able to go up and set another high on the chart as well. Historically this week is a very slow week, and more times than not grabbing too many entries brings more risk with it than reward. For that reason we're going to remain light until next week. With that said, we will have a new video watch-list out tomorrow going over a possible thanksgiving play on the VIX starting Wednesday with a potential hold into Friday morning or next week! Below you will find the DJIA 6 month daily chart with key support and resistance labeled.
Current Below $20 Plays on Watch:
SDOW: This one is our inverse DJIA play. Simply put, if the DJIA sees a pullback after this big run topside, SDOW will respond by moving higher. It will move opposite of the DJIA. As it stands now we do have the DJIA indicators nice and topped out. Let's keep an eye on SDOW, if not in, for a potential entry if we start to see the DJIA show some weakness. SDOW chart is below with the full strategy laid out for you along with key support and resistance levels. Notice that a change has been made to the initial and second profit target since we have drifted lower.
LABD: This one is our high risk/high reward trade due to the fact it sees very rapid movements. Nothing really new to report at this time. We're essentially holding the same range as the past 5-6 days. I think if we can go up and break $15.37, this one could start to move for us!