Watchlist for 3/5/13

DROP - Former runner got biggest volume spike today since October and had really nice price action close above 100day highs. Looking for a continuation into tomorrow (needs to break todays high) and target is .35ish then hopefully gives us a flag formation we can play again later in the week

RFMK - Bounce watch here needs to extend past .0025 in the morning with good volume. Likely should bounce back into the .003s which may not seem like much but thats another 20%+ from todays close

DCTH - Starting to really get moving now. This still looks like a good swing trade here needs to hold above 1.71 going forward. 2.00 target

RVM - descending wedge, tried breaking to downside but rejected it (volume came in) now could break above it. Needs to clear 2.00 tomorrow but could see a nice snap back towards 2.60 this week

CCRY - Complete lottery play here. Not something I typically put on watch but this stock is getting huge volume out of nowhere and is actually pretty actively traded. It had almost 500 trades go through today. .002 is the KEY support. As far as a target. No idea. Mental spots would be .003 .004 .005 etc…Gut says .005 but this is a lotto play.

OPTIONS

PCLN - This stock has held onto its 8 and 21ma very well and today exploded upwards. Looking for a multi-day move here on PCLN and with the markets getting close to breaking to new 2013 highs PCLN looks very good. If you have never traded PCLN before then dont make your first trade tomorrow because PCLN is a different type of beast. Watch the options for a few days to get familiar with the moves. If you have traded PCLN before then what Im watching for is a gap down to buy calls. 705 is the good support so Id load up on 715 calls down there. Otherwise Ill chase HOD breaks and sell into the momo.  I think we see 730s print by friday as long as market dont rollover.

AAPL - Looking to buy calls tomorrow on a gap down on AAPL. Not bullish overall on the stock but AAPL doesnt like getting too far extended away from its 8moving average. Currently 20$ away from each other I think we see some sort of bounce tomorrow back towards the 8ma. Gap down and a red to green move would be a confirmed bounce for me. FYI – Quick lesson. A gap down then a reverse to green would give us a start on a creating a hammer candle which can lead to short term reversals which is exactly what Im looking for on AAPL. 

SPWR - This stock has held up very well considering many other solar stocks recently getting hit hard. SPWR has a decending triangle here forming at the highs with baseline right around 11.50 and the descending line right around 12. This is going to break one way or the other but Ill be playing it for sure. Looking for a break under 11.45 for puts or a break above todays high of 12.08 for calls. Of course volume must confirm it either way.

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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