1/11/18

Good evening!  Interesting day in the market.  We had an early sell-off that recovered.  I see this as a mere pause in the action before charging higher.

I’m still holding $HD calls.  Nothing exciting happened today.  Had some time decay.  My stop is at $191, so I still have a dollar or so at risk before potentially getting stopped out.

Let’s take a look at some potential plays for tomorrow, my favorites being $AXP, $DIS, and $LVS.

Breaking Out:

$AXP and $JPM are both breaking out.  Personally, I like the $AXP play better than the $JPM play because $AXP has a slightly cleaner chart and more room to run, but both have good potential.  I would apply the 5min rule before getting into either of these positions.  $AXP Target 1:  $102.50  Target 2: $105.    $JPM Target 1: $111.06  Target 2: $114.69.  AXPJPM

Second Target Push

$FB and $NFLX paused yesterday, but had better days today, particularly $NFLX.  I really like the $NFLX play here assuming it satisfies the 5min rule.  My biggest concern with $NFLX is that it’s reporting earnings after market close on 22 January, so there isn’t a lot of time to let this trade breath.  In either event, assuming I got into the trade, I would set my stop at the low of today’s candle.  $FB Target 2:  $193.73  $NFLX Target 2: $222.24. FBNFLX

Still Trying to Breakout-Out

A number of stocks are still on the cusp of breaking out.  I’m keeping an eye on: $IWM, $JNJ, $PYPL and $SBUX.  Of all of these, $JNJ is probably my favorite since MACD crossed and is bullish.  A potential $10 gain for a $2.5 risk.  However, be aware that $JNJ reports earnings on 23 January.  I would not get into any of these until the last 5-15 minutes of the day with price solidly above the breakout price.PYPLSBUX.pngJNJ.pngIWM.png

Bouncing

$LVS is bouncing off of it’s 50EMA.  Stochastics are turning up, as is MACD, although MACD has yet to cross.  RSI has plenty of room to run.  It has a reward of $9 with a risk of just $1.5. Keep in mind that earnings is on 24 January.  Targets:  1:  $72.24  2:  $75.3  3:  $79.25LVS

$DIS.  This trade could easily go against you based on the technicals.  However, if the bullish trend continues as it has over the last few weeks, we could see a bounce with a nice gain.  Notice the ascending trend line that has acted as support 3 times in the past.  If it holds a fourth time, I’d be looking at a target of $113.16.  I’m not sure I would hold beyond that due to overhead resistance, but for a swing trade, there’s extremely low risk.  I would get in on the 5minute rule OR, if $DIS gaps up and comes back down to the trend line, I would enter a small position with a tight stop.  I’ll have  my eye on this one tomorrow.DIS

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April 5 Update

Hello all,

I’ve been keeping an eye on the market and it seems as though we are at or very close to a breaking point on a descending triangle.  This is true both of the DOW and the S&P.  Will we bounce or will we push lower?  There’s no answer to that until it actually happens.  Once it does happen, the direction of the market will become more clear and trades with low risk and high reward can be taken.

On a side note, with the addition of $AAPL to the DOW, I believe the S&P is a better indicator of overall market health.  So any time I reference “the market”, I am talking about the S&P unless otherwise specified.

A number of stocks are at key support levels, some are in bollinger band squeezes, and others are in existing down-trends.  Let’s take a look at a couple of stocks exhibiting this behavior:

$JNJ:

As can be seen, $JNJ has been in a down trend in recent months.  It appeared to have formed a double bottom, but it is about to retest that bottom.  $JNJ was in a downward channel, but made a higher high and slightly broke out of the channel which is slightly concerning.  However, if it breaks and closes below $98, I’m looking for a swing trade over the course of a week or two down to $95.  MACD is already looking slightly bearish and a close below $98 should support a short trade.  The other way to play this stock is to go long if it bounces off $98, but that would be a counter trend trade and would require a tight stop.  JNJ$LVS is another stock in a downward trend worth looking at.

$FSLR:

This stock does not necessarily follow the trend of the overall market.  As a matter of fact, it has been in a side-ways pattern for around a month or so and is now in a bollinger-band squeeze.  Whichever way it breaks out of the band is the direction I would take the trade.  However, I would start with a small position due to the possibility of a “head fake”.FSLR$HES is a stock just about to enter into a bollinger band squeeze.

$EXPE

$EXPE is a great example of a stock breaking out.  The only thing I am concerned with is if the market pushes lower, the breakout could fizzle.  A low risk trade would be watching for $EXPE to come back to $96.74 before getting in and keeping a tight stop.  You may miss the move with this approach, so the alternative is to get in at market open understanding that you’ll want a wide stop.EXPE

$EBAY:

$EBAY is and has been in a nice uptrend.  It sits on the ascending trend line and is a good low risk/reward play.  However, this one may also depend on the direction of the market.  MACD is looking bearish so the stock may roll over.  If it does $55.50 is the first target.  $54.00 is the second.  If we get a bounce, $59.70 looks likely as a first target.EBAY$BBY is another stock in a similar up-trend.

That wraps up this update.  Have a great night, hope you had a happy Easter.  Good night and happy trading!

24 March Update

The markets pulled back further today after yesterday’s sell-off, but the bull-ish trend is still in tact.  I am still cautiously bullish, but there isn’t much that is catching my eye right now.

Real Account Update

$DD

Dupont seems to have broken the upward channel.  I’m a few cents away from my stop but see another opportunity to enter bullishly at $75.00 if my stop is hit.  That being said, the stock closed on it’s 100 SMA, which may prove as support.  Overall my loss will be minimal if I do get stopped out.  At this time, I have no plans to short

DD

Stocks I’m watching:

$AAPL, $LVS, $TWTR, $FSLR, $VLO.

For $AAPL, I’m still looking for the 129.50 entry.  $LVS looks like it’s rolling over.  I’m looking at a potential short trade.  Both $TWTR and $FSLR broke out today.  I am looking at potential continuation patterns.  $VLO, I am still looking for a break out before getting in long.

That’s all I have for tonight.  Happy Trading!