November 4th, 2016 Watch-list
Evening traders! So my hope was I'd be able to do a video watch-list tonight, but unfortunately my voice is still unable to give it a go, so just a written one today. We'll go over some important things though! Today we saw the overall market continue it's downward move with the DJIA closing down 28.97 points. That makes it 2 days in a row that we've closed below the 18,000 level which was once support. We did briefly make a push back above it today, but the bears ended up taking back control. Looking at the DJIA 6 month daily chart below, you will notice I still have the descending triangle labeled with blue lines to serve as an example of the bearish nature of descending triangles. At this point we are breaking below that lower support line as the two lines pinch together. As we've discussed, we're still going to remain light for now until the election comes and goes so we do not take on any added risk. DJIA daily chart below.
Current Plays On Watch:
Oil strategy: As we began talking about a few days ago, oil has see a strong pullback and is entering into some key support levels which may provide us with a bounce opportunity in the coming days/weeks. Looking at USO (below), you can see that we ended up cutting through that 200sma and continuing lower. We are now entering a solid level of support where we have seen USO bounce off of $9.95 and $9.82 in the past. This is the initial area I would look to USO and oil for a potential reversal. Just like we did last time (except this time we're targeting the opposite direction), we'll look for USO to give us a 3/4 daily buy signal. Once the daily buy is intact, we'll then look towards either GUSH or UWTI for potential entries. What we will want to see happen in the specific one we target after we receive the USO daily buy is a 15 minute buy signal in either UWTI or GUSH. Remember, both of these come with added risk due to the fact they can move very quick. Both charts are below with key support and resistance labeled, along with suggestions on profit target/stop loss.