September 12th, 2016 Watch-list

     Evening traders! Huge red day for the market with the DJIA pulling back 394.46 points to close out the week. It appears that our bearish sentiment was the correct view. Anytime we have a big red day like this, as swing traders I prefer to give it a day or 2 to settle before jumping back in. We held off on new plays for a bit as the market consolidated the past few weeks, but now that we've seen it breakdown, we could have some opportunity going forward. If we can settle in the 18000-18200 level for a day or two, could be some decent plays for the above $20 plays. Daily chart getting down near its oversold level. Weekly chart finally letting off steam. Finding some support near the 20sma. Lets be cautious this week until the market settles. DJIA daily chart below with key support and resistance labeled.   


Current Below $20 Plays On Watch:

TRQ: Unfortunately our protective stop at $2.98 was hit right off the bat on this one as it gapped down and opened Friday at $2.98. Utilizing a stop on quote order, that would have triggered an immediate exit. We'll keep this one watch going forward for a potential re-entry. 

Student Request Reviews: 

XCO: We finally saw this one make a strong topside move Thursday, however it came right back down Friday. At this point we've received the buy signal for those playing, now it's about momentum continuing topside. We don't want to see continuous red days here. Hopefully it will recover early this week.   

Plan for This Week:

     Honestly, I'm glad we're finally seeing the market settle back a bit. It had held an overextended weekly chart for some time and that was limiting the amount of new plays we were adding. Having it fall a little further, or at-least hold this level, will finally allow that weekly chart to reset. For this week we'll first want to see how the market reacts the first few days. If we can get it to begin to settle, that's when we'll look to jump on 2-3 new above $20 plays. In the meantime, we'll look to hopefully add 1-2 new below $20 plays. I'll be watching the 18000 level for the DJIA as the first potential reversal point.