After adding only 98k new jobs, 82k short of analyst exceptions, the Bureau of Labor Statistics announced that unemployment fell to 4.5%. Markets had an indecisive reaction to Job reports after waking up to President Donald Trump’s late Thursday airstrike against Syria. Gold futures spiked higher on the Syria news but was not able to sustain as more news came out throughout the day on Friday along with Job Reports.
SPY closed down 0.24% on Friday which is exactly what it did last week 03/31/2017 in an interesting fashion. SPY is currently forming a descending triangle and trying to hold on to 50 Day Moving Average on the daily. Markets still remain bullish unless we start to hear news that can deter Presidents agenda and can drive the price lower to test past few weeks low. Defense stocks rallied following the Syria news and will likely continue to trend higher next week as the administration mulls over various options including military strike.
Trade Idea Recap
Let's look at couple of ideas that I decided to trade last week which I thought were good candidate to go long.
RYI – Ryerson Holding Corporation : We said that if $12 holds and Elasticity remains above 0, I'll be looking to start a position with $14 and $16 as my targets. I found an entry at low $12 on Wednesday and sold more than half of my position at $14.50 on Friday. Luckily I found the high of the day. Stock gave away half of it's gain intraday closing at $13.50 still up 10%. I plan to ride this momentum to $16 or close out the remaining position at mid $12 if it were to give away it's gains.
ALRM – Alarm.com Holdings, Inc. : I'm still holding onto my ALRM position as Elasticity continues to stay positive and the price has started to form a base around $30 moving sideways. The theory is still the same as I'm anticipating another test of $33 in coming week and potentially breaking that to test $35 in next few weeks.
WB – Weibo Corporation : Next week I plan to take this trade off and cover my position if WB starts to base above $50. My $45 target seems a bit far fetched now so I'll be happy to cover mid $47 or take the loss.
Four ideas to Buy High and Sell Higher
Ok so here are the four stocks that I'll be watching to see if they can start to rip higher next week. Using BuySellShortCover's prospecting engine, I've created a scenario targeting actionable stocks that are priced above $10 which have been trending higher since past three months...
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..
ZYNE – Zynerba Pharmaceuticals, Inc.
Despite reporting 4Q loss on March 27th 2017 which is normal for Biotech companies, stock has started to move sideways and trend up since then. ZYNE completed several phase 2 enrollment goals and markets are taking this progress positively.
$23 seems like a strong resistance as three previous attempts to breakthrough that has failed. Elasticity is trending higher and it's very probable that we break $23 if $21 continues to hold. I'll be looking for an entry next week on any pullback with low $21 as my risk and target as high as $29 in few weeks to come.
TGH – Textainer Group Holdings Limited
TGH has appreciated almost 2 times this year, thanks to a competitor going bankrupt which caused shortage on shipping containers which boosted it's numbers last quarter. Shipping industry in general seems pretty rocky these days so this idea wouldn't be a long term holding and should be traded for short period based on technicals. Elasticity has stayed positive nicely since January and $16 seems to be a good entry if it were to retrace with low $15 as risk. $23 should be the first target if $17 breaks on strong demand in next week or two.
MDSO – Medidata Solutions, Inc.
As MDSO continues to build upon it's strategic partnership as it closed 6%+ on Friday breaking out of that $60 resistance. Stock is currently trading at an all time high territory and is likely to go to the next target of $70 assuming the strong demand continues. If I find an entry next week I'll be using $60 as my risk. Also note that MDSO currently has 9.5% short float but it has been decreasing slowly in the past month as shorts are steering clear.
AKRX – Akorn, Inc.
Despite being fueled by buyout talks stock has bounced very nicely since early February. Price is likely to go higher if the news drags on for next week or eventually company gets bought out. If neither of these two events happen and there are no bidders then AKRX is likely retrace back to $25 area. This is going to be a bit riskier than usual so I'll be using high caution and managing my risk accordingly if I decide to play this.
Prefer Watching Video Instead?
Alright, That's it for now folks. Happy and Profitable trading for next week.
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