This week is going to be volatile, there is no way around it. If there is any escalation of tariffs from the U.S to China or the other way, the reaction on the market is going to be rough. So in addition to alerting to some swings this week, I want to remind traders of the tickers you can buy when you are concerned that the market is falling.
SQQQ, TVIX, UVXY, all go up when the market drops, by design. They are ETF’s with somewhat complicated ways of determining their value, but they do publish a NAV daily and end the day trading awfully close to the NAV. Many people do not hold these overnight. However if the market is calm for two or three days in a row, it seems like rhetoric from Washington should interrupt those feelings, so buying a security like that at the end of a up day on the market (these securities will be red those days) and selling the next day might be a smart strategy.
The effect that pessimism has on swings and bullish flags is that they can take the momentum right off the table at ANY time. Only the most solid swings and bullish flags can rise through a market sell off, while the others can turn UGLY very quickly. I always use trailing stop loss orders to protect my trades, but this week they will be especially important.
So without further ado, I would like to get into my Swing Indicators for the week. I will insert pictures of each trade at the top here, and then follow up with descriptions for each. The following are indicating they will swing up sometime this week:
These charts came from the GREAT research app, Stocks Live, only on iPhone, iPad.
NCMI is one we have been on for a week and it’s stalled out. But at the same time, there is a series of rising levels of support. If it is able to pop above 5.60ish then $6.00 is an old support level that will act as resistance next. However be careful that the pattern doesn’t break down on you. I think 5.20 is a good Stop Loss, because it’s below the last support level. But a standard 10% Trailing Stop Loss is also a great way to protect the trade initially. Risk: Medium. Reward Potential (RP): $6.00 at first and we can reassess what the pattern looks like if it reaches that point.
HMNY is one that I happen to believe in for a lot more reasons then the technical pattern. But they are showing swing, and are oversold. Risk: Medium/High (because they are misunderstood by the market). RP: Medium/High
LXU is reporting earnings on May 25. This year has been the year of “buy the rumor, sell the news.” So in addition to showing a little swing indication, here is a “rumor/news” play here that can bring in some extra profits. Risk: Low/Medium. RP: Medium/High
MNKD isn’t really showing a swing yet, that was a very abrupt drop on Friday and there hasn’t been a pop above any moving average at all. There isn’t even a sign of strength. But if the price rises in an Ascending Triangle formation (flat part of the triangle facing upwards, remember the last article) then this becomes a recovery play/swing. I am not interested in purchasing this until I see the pattern, and I would just want a quick 10% regardless of what pattern showed up. Risk: High. RP: Low/Medium
AKER is waiting on news from the FDA. They fell after their last earnings announcement, but that was not what the previous run up was anticipating. They wanted FDA news. I see a swing forming technically, and the rumor/news play is also in effect here. Be advised that negative news from the FDA would send this to .20 cents in a heartbeat. But the run up to the news, if it takes more than a few days, should be big. Risk: Medium/High. RP: High
TEUM beat traders down after their Earnings Announcement. On one hand they reported a massive loss. On the other hand, the expensive part of their product infrastructure happens at the implementation of a contract. The revenue comes later. I think the story behind TEUM could propel them to a small recovery, but it might be smart to wait to see it spike above the 20SMA before getting in, to get the swing confirmed. Or wait to see a volume surge. Risk: Medium. RP: Low/Medium
TNTR was a play of the week for us last week, and the swing story is holding up. In addition to being a really solid technical swing, the news and rumors propelling this rise should continue for a while. They have a new CEO and will announce a new CFO soon. It’s already a failed IPO, a year in, but to me that means the price target could reach the original IPO price in the medium term without any change in their actual financial performance (2 weeks to 2 months). Risk: Medium. RP: High/Very High
ITI is another one that has a couple resistance points to fight to. Short term it looks like it’s easily going to get back to around $5.00, and if it shows a bullish pattern at that point there is a larger swing to finish to around $5.60ish. Risk: Low/Medium. RP: Low/Medium
ATRS is on the list for the 2nd week in a row. While it didn’t hit last week, it did not fully eliminate the pattern. $2.00 is low enough for me to bail, but the upside if it actually takes hold is 2.30, to 2.60. Risk: Medium/High RP: Low/Medium
SRNE is also on the list for the 2nd week in a row, and last week it did come through, after a terrible Monday. In addition to showing a little swing, there are consecutive Ascending triangles on the recovery last week. It didn’t like last Monday so I want to be sure before I get in. Risk: Medium/High RP: Medium/High
LKM again, the 4th pic that is going on it’s 2nd consecutive week. Same story as last week, but we get to lift our PTs because the first ones have been breached. As a recent IPO, valuation is impossible to nail down, which makes traders flighty. Having said that, it’s stochastic RSI is saying oversold, and I tend to believe it this time. Risk: Medium. RP: Medium/High/hard to say.
Of course, your risk is minimized when using stop losses and following Black Ink Trading Tips, not emotions!
Nothing I ever say should be taken as investment advice. It’s my opinion. And you know that has been called into question before. I drank 20 ounces of cold brew coffee at 9pm tonight for example. I intend on sleeping with the shakes I guess. My point is, don’t buy any of those stocks or securities because I said so. Do your own DD and make your own decisions. Good luck this week!