Watchlist for 12/3/13

FNMA - Looking for a breakout tomorrow. We’ve been watching this one as it consolidates but today it showed signs that it was ready to get going again. Watch for a move above 2.85 tomorrow, if this gets going again we could see the next run bring us back above 4.00.

BSPM - Saw a huge gap and go day today and closed on the dead highs. Looks good for some follow through into tomorrow with 2.80-2.90 being the target zone. Watch for prior high break

MMRF - Broke above nice looking triangle pattern today, and looks great for a big move tomorrow. I dont see much resistance til .06-.07 so I think thats a good target for tomorrow.

FARE - former runner that has been acting really strong during the last month or so. Looking for continued momo into tomorrow with .15c acting as a magnet. Use .097c as a stop .

PVCT - broke above a big long wedge on the daily chart today. I think we see this one go on a multi-day move with new 52w highs being in play this week. Key support at .89c

REE - Bottom bounce play , today saw a big green candle, first one since Sept. Could see a oversold bounce back to 2.10 by wednesday. Use todays high as a pivot level.

OPTIONS

SPY - SPY last week closed green yet again, thats 8 weeks a row. We haven’t seen a streak like since 2004, so Im looking at this streak as a great opportunity to get short because its very rare to see streaks like this. Now today, first close under its prior low since & a VIX close above 14 since Oct 8th. Why is this key? Well SPY has seen a few down days during this 8 week green streak but none of them were also met with spike in the VIX so the fact we saw a weak day today in addition to volatility expansion at the highs of the chart following a long multi-week rally I think this is the making of a short term top. I am short SPY overnight via 180x weekly puts. Looking for a move to 178s this week.

GLD - Looking for a break into new 52w lows. I posted this chart on twitter last week, check out this big monthly bear flag. http://i.imgur.com/WxlXLiV.png   Today gold got killed all session closing down over 2.5% but I think we see another big liquidation move like what we’ve seen twice already this year. A gap up tomorrow would be a great shorting opportunity . Only way this trade wont work is if it gaps down big tomorrow. I like the 115x puts for a move ITM this week.

 TRIP - Watching for a breakdown tomorrow. This upper level flag could fail to the downside due to where the market is. Watch for a crack under support at 86.50, could open the door for nasty sell off. TRIP has down this a few times in recent months, could be setting up for similar move tomorrow.

 

 

 

Remember this is just a watchlist and do not guarantee to be profitable trades. Use your own judgment when making the trade.

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