Peter's Watch List October 16th

Good Morning,

The market gapped up and made a pretty strong move yesterday morning before churning sideways all afternoon. Right now it looks like we may see a 3/8/20 cross up today for most of the major indices. That's the good news. The bad news is that we are right back into an area of major resistance near all time highs in particular on the SPY. Recently, trading has been pretty tough when we are just below or making new all time highs, but for the moment the market looks rather resilient. It is also worth noting that despite the strength there are a few signs of concern, with the biggest one being the low float mania that is going on right now. This is a phenomenon that often happens at or near highs and is often followed by pullback. I am being very careful to not have confirmation bias, but I do want to be aware that I've seen this phenomenon before and I know how it usually ends. I will continue to be patient and focused on shorter term setups. Here are some names tat I will be watching today:

ABEO made a strong move on volume yesterday over its sma20 and sma50. I like this over 2.82 for a test of $3 and possible move higher

SILK is a recent issue that is setting up for a 3/8/20 cross with some room up to the ema34. I like this over $33 for a push up to that ema34 around $34

GMS has a very nice TTM Squeeze on the daily and regained its sma20 on high volume yesterday. I like this over 29.08 for a push up towards $30

TPH has a TTM Squeeze on the daily and also regained its sma20 on high volume. I like this over 15.21 for a push up to the mid to high $15s

SGMO will be watching for day trade only as they have trial data due in the 4th quarter which we are in, but I like this over 8.45 for a push up to $9

PLAB has a nice TTM Squeeze on the daily and just had a 3/8/20 cross back up after a retracement off of recent highs. I like this over 11.25 for a push up to the mid to high $11s

ZUMZ is another name with a TTM Squeeze on the daily and a reclaim of the sma20. I liek this over 31.29 for a push up to $32 or higher

9 views0 comments