Since the breakout on Friday February 9th 2017 the market continues to run. SPY is up almost 2.60% and DOW is up by almost 11% since its run from January 23rd 2017. All this market euphoria has prompted the president to acknowledge the momentum and remind us that he promised an economic environment more favorable for business expansion.
Great optimism for future of U.S. business, AND JOBS, with the DOW having an 11th straight record close. Big tax & regulation cuts coming!— Donald J. Trump (@realDonaldTrump) February 25, 2017
Only time will tell how markets and corporate America will digest these cuts.
Another major event this weekend - the Oracle of Omaha, Warren Buffet, expressed very positive outlook on the US economy suggesting the investment gains will continue to be substantial. With positive optimism all around it will be interesting to watch if markets continue their momentum towards the upside next week.
Now let's look at some of the potential long ideas from next week.
I'm looking for actionable ideas with strong price appreciation and positive momentum so I've set criteria in the prospecting engine to specifically target this. There's other criteria I could've used to further tune this scenario and yield very specific setups but I'll save some juice for another post.
To Learn more about how to use and take advantage of our proprietary gauges; i.e. - Berserker, Elasticity, Flux, and Social... watch the instructional videos we created on our howitworks page. Now back to the results in our scenario..
AAOI – Applied Optoelectronics, Inc.
With strong earnings and forecast AAOI has broken into an all time high territory. This can continue to trend higher but we may see some profit takers early next week that can push the price down. I took a short scalp trade late afternoon on Friday last week from high $48 and covered at low $48. This stock would definitely make 5% - 9% move on Monday so worth to put on a watch.
GBT – Global Blood Therapeutics, Inc.
GBT recent breakout of $24 which is the six month high looks significant from a technical perspective. On Wednesday Feb 22nd 2017 stock took 11% hit due to the public offering but traders and investors alike saw this as an buying opportunity pushing the stock higher to close at $28.15 on Friday Feb 24th 2017. I would be on the lookout for $30 breakout next week to join the trend on the long side.
KEM – Kemet Corporation
KEM's has a beautiful chart with the price going from lower left to the higher right with a steady supply of increasing volume in the past six month. With the recent acquisition of NEC TOKIN from NEC Corporation. This would be on watch for a swing.
VSAR – Versartis, Inc.
A strong bullish move from $16 resistance with 6x more volume in the past 4 trading sessions as their promising trails of it's lead product pushes forward , this stock is a strong candidate to test $23 if this can take out $22.60.
And a few others from this scenario you can analyze in our platform. We encourage you to research each actionable idea further to understand the catalyst, story, and/or event behind each one:
- LNTH – Lantheus Holdings, Inc.
- CALA – Calithera Biosciences, Inc.
- EDIT – Editas Medicine, Inc.
- ESPR – Esperion Therapeutics, Inc.
Here are some of the stocks that I'll be watching to play on the short side. Once again, to Learn more about how to use and apply proprietary gauges such as Berserker, Elasticity and Flux checkout our howitworks page. Now back to the ideas..
The rationale behind this scenario is simple. We are looking for ideas that have newly or existing negative momentum, minimum price depreciation, and Flux greater than 5% (after all, I want some minimum volatility to keep things interesting).
ACIA – Acacia Communications, Inc.
Event though they met quarterly earnings expectations, ACIA hinted a week outlook for future. Once a $100+ stock now trading at 50% haircut, our proprietary indicators point to more downfall next week.
ZOES – Zoe's Kitchen, Inc.
Event though ZOES CEO points to a hopefully better full year results, investors and traders alike didn't buy what ZEOS was selling and as result stock closed down by almost 12% on Friday Feb 23rd 2017. More downward momentum seems likely as the stock ventures into the all time low territory.
RDUS – Radius Health, Inc.
As losses grow wider quarter over quarter RDUS is poised to test the lows $37 with the Elasticity stretching further away from 0. I'll be on the lookout for continued movement downward next week.
Few other stocks to watch -
- SWN – Southwestern Energy Company
- SM – SM Energy Company
- BLCM – Bellicum Pharmaceuticals, Inc.
Alright, That's it for now folks. Happy and Profitable trading next week!
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