One of the perks of being a subscriber of The Entry Points premium content is that Trader Scott sends our members comments every morning about market directions, movements and stocks we are watching for set ups. We release these comments in an edited form afterwards from time to time to allow our visitors a little peak into our premarket information.
8/21:
There are some ideas for the week here in this video about individual stocks, and here with a look at markets. So there is a good amount in there to look at, and this morning is relatively quiet, so far. Gold did a few nice things (short-term setup) overnight, as did the Yen. I bought some PM calls on Friday into the noon selloff, and will be looking to exit.
A few stocks to watch – of course be aware of the situation with markets, keep your eye on these stocks going forward, not really daytrading view.
CNIT – is a China-based “provider of cloud-app technologies for Internet-of-Things (IoT) platforms and internet-based ad distribution and ad screen sharing systems” On 6/5 it said it had “entered into a contract for the sale of 3,000 CNIT cloud-based ad terminals to be installed by year-end in numerous cities in Fujian Province including Quanzhou, Shishi, Jinjiang and Nan’an.” This is expected to generate about $1 million in 2017 revenue.
On 5/30, CNIT announced a sale of $2 million of their ad terminals. The details – “7,000 ad terminals are to be installed this year in Shenzhen and a May 22 announcement on the company’s $1.5 million sale of 5,000 terminals to be installed by year-end in Shanghai. As was the case with those contracts, the Fujian sale is expected to generate additional revenue from customers’ use of Yunfa Net (www.cnitiot.com), CNIT’s cloud-based system allowing an advertiser to create reduced-cost ads on a PC or mobile app, transmit these ads to the elevator ad terminals of their choice, and receive feedback from the terminals on how viewers are responding to the ads.”
CNIT – the long term chart showing the stock having a full round trip with the rocket ship after the IPO, but the stock is now a survivor. It’s now been around for 10 years, but has traded back to its original IPO price once again. The IPO price is usually a support area when stocks do a round trip. Been watching this for awhile an old chart here -the accumulation area – the last time the stock traded at these levels (support), resulted in an explosive move and some huge buying climaxes. The stock has a lot of technical damage long term. We do need to get a feel for the bigger picture, as it can increase the probabilities of a reaction buy even in the short turn, And knowing these price levels can also offer the opportunity to recognize all different types of trade setups, For instance, the stock is now at multi-month highs, appears to be under accumulation. And today with earnings news.
There’s a big deal in the shipping and the marine oil transport business today, which could affect [….].
The bombed out retailers have been talked about here many times as a place to look for at least very short term opportunities. Here is a post with more ideas about that. BONT is interesting to keep an eye on.
Another Chinese-based stock – JMEI, strong volume rally Friday, so watch the reactions over the next several days.
FALC – This stock is coming off an all time low which doesn’t mean it’s going to do anything. This stock needs to prove itself a bit by getting through the resistance are at .33-.34. We’ll be watching it. One interesting thing to consider sometimes is the ability for these stocks to be shorted. This particular stock has restrictions on it which is one reason why it could rally.
8/22:
Please watch this video (again) for the markets this week. It’s pretty basic, but just using sentiment and support/resistance is a tremendous “method” in itself. It is wild how bearish people have gotten on the stock market with such a small selloff. It’s the point about targeting/shorting the volatility indexes vs just going outright long. The volatility indexes like [….] act like options (they basically are), and the “premium” (emotion) gets pumped up and then fades – over and over. Don’t ever buy these things on strength (or maybe anything). I’m still short vol. since last week, and will cover soon. The stock market has a bounce in it from the decent set up over the last few days, the bounce likely will follow the pattern of 3-4 days. The quality of the bounce will give some clues going forward. This bounce could also be part of a much better overall setup. And just back and forth stuff.
There are a lot of gold doubters, which is good in the bigger picture. The trading range is killing people’s bullishness. The support breaks continue to be the potential buys, and selling into rallies – it’s a trading range. Miners have a chance to play catch up, but they still have to do it. Yesterday I sold a small JNUG position into the rally. This area is getting very compressed.
The small stocks are still not “running” with consistency – that is down the road.
We keep talking about watching these stocks which we bring up, and waiting for the selloff after the big gap up. It’s the reaction a few days later which is the much easier and maybe better entry point for most people – like what HMNY, CLRB, IDXG recently did. For most people, just let the first rally fade, then get interested.
[…] – This stock has been on our radar since last April when it shot up 600% over the course of a couple of days. Since then, it came back down to support and has been building an uptrend. We talked about this stock in a recent video as one to be watching. Stevie has a position in it and has been trading in and out of it since April. The stock has moved about 30% in the past 2 days. We’ll be watching it.
DSW – We’ve talked quite a bit about beaten down retailers. The post from yesterday discussed this again. DSW surging this morning off it’s 5 year low and is up 20% pre-market, so the same idea, observe for now.
8/23:
The markets are still compressed, but at least there is some volatility. Recently we’ve been discussing volatility, the ETFs, and options. They all fit together, as option “premium”, when it gets pumped up, is just emotion. It’s why floor traders love(d) to sell premium/short options, as opposed to buying options. So instead of buying puts, you’d sell calls (likely within a “spread” strategy). All these volatility ETFs are basically just options, but most people trading them appear to be totally oblivious to that fact. For me tho, selling premium/shorting these ETFs is usually the “best” strategy – whether shorting long volatility (TVIX) or shorting short volatility (XIV). The problem is, are they available to short. And yesterday I used the market rally to cover the rest of a short volatility trade (TVIX). A lot of this stuff is talked about at the Winners List or Bounce List pages. The [….] currently is a nice trader, and there’ll likely be a nice dip buy quick trade today, possibly using a TQQQ or equivalent.
Gold, the Yen, miners, NUGT still very compressed, and I’m experimenting with options (for several reasons) to trade PMs right now. I’m long GDX calls, and used GDX for the options instead of NUGT, because of the much greater liquidity in GDX options, even tho the NUGT options move more. Again big picture – gold is in a bull market, I ignore all of the stupid commentary about it, except to gauge sentiment.
LOW out with lousy earnings and I did a post a while ago about how AMZN would start to even bite into the profits of the 2 “Untouchables”/Wall Street Darlings, HD and LOW. LOW has a chance for a bounce trade, once it breaks support. If you look at the chart, the recent earnings (E) have allowed bounce trades on the lousy earnings.
WPP ad agency with horrible earnings. Just pointing this out as the juggernauts, FB and GOOG, are deemed to be invincible. For short-term trading in these 2, buying reactions still works. But always be aware of things.
Not going to press anything today with stocks, but things to watch or observe for us –
PRTK – Horrible long term chart – Up 25% pre-market. This is an example of a stock that moves on basically no news other than news of presenting at upcoming investors conferences. As with any stock, don’t jump in just because it appears bullish. Wait for reactions. It has been in an uptrend for the past year and has gained strength in it’s chart.
8/24:
We’re closing in on…., and also on a much more “trendy” market for gold itself, which is still getting more compressed in its bigger trading range inside of a bigger trading range. See a theme here? Most people do not know about, will never recognize, don’t respect, and will never know how important they are. And will never know how to trade them. Trading ranges are trends also, and just like up/down trends, trading ranges have specific approaches to them. This stuff has been discussed numerous times. People who have viewed them (PMs) unemotionally as a range, have had a very good chance of having done very well with them this year. If not, like almost everyone, then they’ve been flailing around, blaming, guessing, predicting, looking for answers, calling for breakouts – and losing money. The Yen pair bounce affecting gold, miners very compressed still with a shot at finally setting a higher high…., which would be positive for a big….to come. Mentioned yesterday about the dip potential in a leveraged stock market ETF, TNA nice bounce. The stock market still bouncy, but I’ll look to exit a TQQQ long today.
LOW – yesterday talked about the bounce potential once it breaks support, and to study the previous earnings reactions marked off. I didn’t do the trade, hopefully some of you did. Great call options trade. And the massive volume yesterday very nice.
More retailers today, should not be surprising at this point – had a slew of them recently. We’ve been talking about the potential in these over and over. Also did the post about AMZN/WMT a few days ago. And today – SHLD (going thru a process), ANF, GES (EA, SOSes), SIG, WSM, MIK.
So this morning are : MIK (Michaels), SIG (Signet Jewelers), ANF (Abercrombie & Fitch), WSM (Williams Sonoma), GES (Guess) as well as SHLD (Sears).
[….] – this thing is in a major uptrend, but a big change of character currently. This is where the reaccumlation process takes hold.
We like AVEO a lot, but into a huge res. area.
[….] – I traded this one yesterday, 2.96-3.44, it’s into the gap area now, and 3.90 big resistance. It’s another emerging strong stock, but I’ll wait for the next opportunity, which should be longer-term potential.
CLRB is on a watchlist, but only into reactions.
LTRX – also watching.
8/25:
Another media darling GURU flip-flopping on THE TOP in the stock market, as DENNIS GARTMAN is at it again. He recently “staked his reputation” that the market was toast. Now he “doesn’t want to be short of equities”. I use him as an outstanding contrarian indicator, especially in the direction of a trend, even short-term. More later. The last few days, the stock market has been getting compressed, and if you go back over the last few days, my discussion of just trading in and out, using TVIX (volatility) and TQQQ. I took profits in both of those yesterday (discussed at Winners List Page), and then used the “break of support” (141.8) and EA in QQQ to buy [….], and also TQQQ. I’m selling these positions early today. This stuff will be in a video soon for those interested in using [….] for trading indexes.
The Jackson Hole uselessness today could cause some volatility, and a good opportunity to go against the knee-jerk market reactions. The Yen pair shows some levels, and gold also short-term stuff, and still long the GDX calls discussed in premarket a few days ago, also discussed the….area.
Not much with stocks, but [….] has outstanding FDA news. Sort of reminds me of DVAX, which the day of the news, I just decided to get long. DVAX is in the recent video. To continue with options, this and this show how using “market consensus” and “naked selling of premium” can be a disaster. If you’re going to short premium, as I do at times, do it in the opposite direction – meaning do exactly the opposite of the crowd, when a true trade setup is there. The people naked short calls have to deal with this mess.
From yesterday’s premarket, “[….] – this thing is in a major uptrend, but a big change of character currently. This is where the reaccumlation process takes hold.” NOVO had a huge bounce yesterday, and was even down early – hopefully some of you traded it.
DMTX – Up 158% pre-market. Don’t get too excited about this one as it is a buyout so most probably will trade sideways once the buyout price is reached which is $3.41. It’s trading at $3.15.
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