Watchlist for 1/7/14

APP - Broke out above some resistance around 1.25, looks good for some follow through into tomorrow. It has a strong history of multi day runs following resistance breakouts.  1.50ish next resistance area

DDXS -Popped up today and got into the big open gap. I like the way it closed today and I think it has a really good chance to back into prior channels around 1.30-1.45 tomorrow/wednesday.

HEB - A big spike in volume at the end of the day and because it originally opened down today and went green it resulted in a big engulfing candle. Watch for a break above todays high tomorrow for some follow through I think that the recent highs could be tested tomorrow.

DSCO - Broke above a daily wedge today and has a pretty wide open chart up to mid 2.60s. A gap and go tomorrow seems like the right play above 2.42ish resistance.

RCON - Huge volume spike today and a strong move, the last time it saw a day like today it sparked a big rally. I think we run back up to recent highs around 4.80-5.10 tomorrow/wednesday. Look for prior high breakout

SCON - Massive rip into the todays close and with this type of price action and high volume it will for sure be in play again tomorrow. Probably sees a gap up, use 15min high/low as pivot spots to trade on breakouts of opening highs.

OPTIONS

BBRY - Finally broke above the bull flag today and got launched into the 8s. Should be a solid swing long for the rest of the week as long as it continues to find support on any dip under 8. I think 8.50 will be in play tomorrow  & wednesday and that will be my target. I am long BBRY via options overnight.

NFLX - Testing a major rising support line that has sent NFLX parabolic over the last 12 months and today went under that line by just a little bit but was able to bounce back and close off the lows of the day. Having said that, NFLX did spent the entire session grinding higher but yet closed down 1% . Tomorrow we should see the 8ma cross under the 21ma for the 1st time since early October. I think this is the start of a major shift in the trend for NFLX. Watch for a break tomorrow morning back under todays low,  I think 340 will be a magnet this week. I am short NFLX viaoptions overnight.

AAPL - On watch for a continued bounce tomorrow back to 550. I was long AAPL going into today but screwed up the trade and ended up selling for a loss on the morning flush before it ended up reversing and closing on highs. I think AAPL gets back above 550 tomorrow but then gets spit back before entering another consolidation period. It should provide good price action in the AM use 541 as support and 546.50 as resistance points.

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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