October 17th, 2016 Watch-list
Hey traders! We're seeing the overall market continue to be indecisive as we head into another week of trading. As we've been discussing the past few weeks, until we can get a solid break and close above the 18,668.44 high or a solid break and close below 18,000, I won't feel too confident one way or the other. With that said, I do have more of a bearish outlook on the market for the coming months. DJIA daily chart below with key support and resistance levels labeled.
Current Below $20 Plays on Watch:
BDSI: We saw a solid topside move on this one Thursday which set up many of you for entries with the daily and 15 minute buy signal intact. Friday was a mixed day as we essentially held the $2.36-$2.39 range. What I'm hoping to see on this one early this week is a break above the $2.40 level. After that, we should be able to see a move up towards those simple moving averages. If in, make sure to have your 1/2 R/R ratio stops set. That means if you secured an entry at $2.37, and your target is the recommended $2.60, your stop loss would be set at roughly $2.25.
Current Above $20 Plays on Watch:
USO/DRIP/DWTI: Our USO/DRIP/DWTI correlation play has been mixed so far, but Friday we were able to see USO post a red day, which in return saw DRIP see a modest move and DWTI close up slightly. Remember, if USO stalls out in this level like we hope and falls further, DRIP and DWTI will run higher. We'll continue to monitor these two plays going forward for those who did secure entries.