As the markets were in the recovery mode all of last week coming from the sell off prior week due to health care non vote, SPY closed down 0.24% on Friday. For now markets still look bullish due as Elasticity basing above 0. However, SPY has started to show a lower high formation on daily so we should see if low $230 gets tested again next week to start a new trend formation.
Trade Idea Recap
Let's look at couple of ideas that I've put a trade on from last few weeks.
ALRM – Alarm.com Holdings, Inc. : I've opened a position at $31 with $30 as a risk and it held $30 fairly nicely and Elasticity making a strong base over 0. I'm anticipating another test of $33 in a week and potentially breaking that to test $35 in next few weeks. If it starts to go side ways and not trend higher I would very likely take this trade off.
WB – Weibo Corporation : I'm still holding my short entry from $50 although there was an opportunity to close the position on March 21st when it sold off to $47.50, I decided to give it some more time as I had $45 as my target. In hindsight that wasn't a good decision. Ultimately I'd like to see WB trade around $45 or $46 in a week or two but it's very likely I'll close this position out and take a loss if it starts to hold $53.
Ten ideas that could start a new trend
Here are some stocks that I'll be watching to see if a new trend starts to emerge next week. Using BuySellShortCover's prospecting engine, I've created a scenario targeting actionable stocks that are priced below $20 with a decent volatility (Flux) that have started to close positive day over day...
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..
RYI – Ryerson Holding Corporation
After the earnings miss on March 13th 2017, RYI has recovered nicely by finding support around $10. Right now the price has peaked above the past three month resistance and we want to see if it can base above that channel next week by holding $12 as a support. If the demand continues, next target of $14 and $16 is likely to be tested.
After every Elasticity reversal we've seen a $4+ move in this stock and if this Elasticity move from last week were to base over 0 next week, we should expect a similar price movement moving forward.
PTCT – PTC Therapeutics, Inc.
Although the chart doesn't look that pretty with gaps all over the place, this risky bet could be profitable in the short term. In the near term, stock will likely test $10 and $11 and if it doesn't have enough demand it will likely fall back to $8 instead of making a run towards $14. Despite the lawmakers recent inquiry price has continued to trend higher. Any news can cause this stock to gap all over the place so position sizing would be the key if I were to swing this.
KPTI – Karyopharm Therapeutics Inc.
KPTI has started to form a nice uptrend since last week after testing $10 support multiple times. In addition to that the company shared a news that U.S. Food and Drug Administration (FDA) Division of Hematology Products has lifted the partial clinical hold placed on the clinical trials for selinexor (KPT-330).
Notice the past Berserker spike was pretty strong but the price gap down the next day and sold off after going sideways for few days. This stock is a a prime candidate for a follow through Berserker Spike so be on the look out for that. If I were to take on a trade early next week I'll be using $12 as my risk.
PRTK – Paratek Pharmaceuticals, Inc.
After announcing the good news early last week that their acne treatment sarecycline had succeeded in a pair of Phase 3 studies which is a joint effort with Allergan price has made a nice $2 move.
$18.50 and $19 range is going to be a key support if this stock were to move higher. It has made it's first jump over the upward trend channel and if the demand continues we will very likely see $25 in the coming few weeks. Elasticity continues to trend up and we want this to stay above .10 for a week or so in order to see the price trend from low to mid $20.
EMES – Emerge Energy Services LP
After getting an almost 50% hair cut since announcing wider than expected loss on Feb 23rd 2017, EMES has formed a nice support at $10 and has made a $3 move last week. We expect some sideways action early next week and then price to test $15 along with Elasticity to flip positive to form a base around there before moving higher.
Additionally, EMES has a nice intraday range with flux above 7 on average and it moves within $.50 - $1 so lot of opportunities to trade this stock daily in addition to position trading.
And here are 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 them:
- TTPH – Tetraphase Pharmaceuticals, Inc.
- FTK – Flotek Industries, Inc.
- SPN – Superior Energy Services, Inc.
- WLL – Whiting Petroleum Corporation
- BRS – Bristow Group Inc
Alright, That's it for now folks. Happy and Profitable trading for next week.
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