Friday was a very rough day in the market as the $NDX (NASDAQ 100) took a lot of the market down with it. The reason isn’t known other then after a certain price the auto trading (algos) get tripped sending stocks down further. With $NDX down and $SPX down but rebounding to be just slightly down, the winners were the $INDU (DJIA), the $MID (S&P 400 midcap) and $SML (S&P 600 SmCap). While this may be a shift out of the big high flyers like $AAPL and into smaller cap companies, none of these indexes are weak. Anyways, one day hardly makes a trend. This upcoming week will let us now if the market is going to maintain its upward bullish trend or have a pullback. If many see this as a buying opportunity then we can see a quick bounce back or if this is seen as the end of the rainbow then we may see more profit taking.
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- $CLDR, biog earnings loser post IPO reminds me of $SNAP. If the market goes down you can expect this to go down. Short <$19 break. With volume this could really fade. Its IPO was $15, it opened at $17.80, almost 15M shares.
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- $ENDP, pierced the bottom support at 11.64 with a small bounce that faded. Looking to short the morning open at red below 11.50. The chart shows support into the $10s so this won’t be a homerun. Look to cover into the 10.50’s then $10s. If $10 breaks with vol then this could really
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- $ENZ, Long above >10.75. After an uptrend into earnings it still spiked earnings winner. 42M float, Short Ratio 2.6 days.
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- $EPZM, Very strong trend down, nearing a 50% loss, could bounce at the $10 range, however, a break of $10 and 8.50 is the 52wL. Short ratio is 10 days on this 41M float. Look to short the $10 break with ATR of 1.08, movement down is good.
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- $ETP, with oil stocks getting crushed and $USO trading at the bottom of its trend. A new low on oil could also mean another decline in oil stocks. ETP following the trend. Short below 20.68, closely following any USO declines.
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- $HTZ, has been in a major decline after some bad earnings, after $9 SUP holding it has pierced that making n 52Ls. Although vol is weak, the trend is down. I would go short at a new 52wL <8.75, looking for $8 then $6.
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- $MOSY, Long above $2. 6.5M float, Trading 10x avg vol. This has a lot of potential if the shorts don’t beat it down. Its at a mid-candle breakout point here in the 1.50’s. Still a $2 break is where I would watch it again. The only other meaningful vol day had it go from low $2’s to low $2s. I would be looking for similar action, especially if the market is down.
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- $MZOR. A bigger red day after its large gap down. Down ⅓ from its highs. Expect this to fall further if the overall markets stay red. Short below 29.57 as it continues to breakdown. Next SUP lines $28 then $24.
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- $NVCR, Broke out of its flag pattern, closing right below its 15.35 high at 15.30. If it holds this $15, it has a lot of potential to go up. 66M float, Short ratio 7.6 days to cover. Go long above 15.35. It is known to swing large on a wide spread so smaller size at first.
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- $RAD, another big red day on more bad news about its merger failing. Looking for it to open red, short below 2.94.
$CLDR looks really vulnerable right now, so that might be a good play given Friday's tech sell off. I hadn't heard of it before. $ENDP also seems to have furtehr downside so likewise a potentially good play. I did know of this one. I don't know much about the others, but I would not short $RAD. Even on bad news. The amount of rumors and possible fake news could send it sky rocketing again, I'd go long for sure in trying to catch a swing, but not short, just not worth it. SNAP is on my watch lis
*list too because it's back in no-man's land where it was after the initial earnings reaction. Even more downside seems possible if tech continues to decline.
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