Good morning everyone,
Yesterday we took a pause in the markets and that was something we felt was due to happen. Some sectors are very overbought short term and have pierced their upper bollinger bands they could use some time to work their way back in and absorb the recent move. Earnings season has been better than many anticipated and the tone for the economy and business has been more exuberant lately on anticipation of tax reform and regulation roll back hopes. Whether you agree or not the market has been focusing on what it believes are positive developments ahead. I have no way of knowing when or if that will change but its important to keep an open mind and look for signs that can signal the change may be taking place. When the market starts to enter a time of indecision it can become very choppy and that can make trading much more challenging. When its really choppy I have a tendency to sit on the sidelines. I don't feel compelled to try and force a trade if I feel as though there is no edge. It took me a long time to realize I can be a day trader but that doesn't mean I have to trade every day. Sometimes the best trade is the one you don't take because you missed the ideal entry, you have no clear plan, you don't know your risk reward or the market isn't trending. I do not trade just to trade because I am bored. If I can't find a good day trade setup that I am comfortable with, I start looking for swing trades setups or maybe I take the time to do some research on a stock I am considering for my long term hold investment account. If you don't like the action in the markets find something else to do.
It looks like we are going to have a slightly red open but just because we are seeing some red doesn't mean a dramatic selloff is coming and the bears are taking full control. It just means we need to take a breather and think about things a bit. Collect some data, absorb the recent action and decide who will take control for the next significant move.
We have a long long holiday weekend ahead so this could be a day of choppy action as people lock profits before the weekend.
1. Keep an eye on the dollar and volatility. UUP TVIX TVIZ UVXY
2. AIRG earnings potential 16 dolla holla and roll
3. VLRS earnings looks like a beat could get a 15 test and roll Transports are a bit extended though could be fighting the sector
4. RGSE pr after the close gapper do not chase but could be in play today looks for potential sympathy plays in the sector ENPH VSLR could be worth watching solars have also had a nice run recently
5. TOPS making a move off pr small floater shippers could be worth watching for day trade opps do not chase > wait for a clean setup DRYS ESEA DCIX SHIP TOO SALT a few names to consider
6. TRUE earnings gapper potential 16 test and roll
7. CLD worth watching for follow through day >showed some strength in a weak tape yesterday
8. PRMW hot looking daily thin one looking for a trendline break with volume
9. ARAY pr after the close yesterday daily not bad not moving premarket but could be worth watching
10. BNTC pre market news Very early stage they will need cash soon Day trade only do not chase
11. AZN pr more of a swing or long term hold potential 30 roll and 200 day cross
12. MYGN PR potential 18 test and roll smaller float huge short interest
13. ASMB hot daily thin stock look for a 20 roll with volume
14. RWLK earnings lil gapper day trade only potential sympathy EKSO
15. CYTK flirting with a 12 roll premarket potential day trade with swing lotto
16. SXE nice spike yesterday small float good volume on the pop closed HOD potential red to green continuation
17. MNTA hot daily news premarket 19 roll potential gapper sympathy plays could be VRX ENDP HZNP
Make sure you have a plan and do not chase.
Best of Success
Feb 17 2017 Free Friday Premarket Prep from Alpha Wolf Trading on Vimeo.
