So I was right to be hesitant this morning, U.S. stocks continue to drop sharply with the Dow pushing -300 as I write at 10:41 AM ET. I’m hesitant to get aggressive but mindful the IWM is at major support and should find a bounce off the 200 moving average.
So here’s my plan for now. If the IWM bases today I might get aggressive with my trading this afternoon, looking for a few days of rally into the weekend. But given I’m up nearly $19,000 this week already, I’m not going to cowboy it just for the sake of trading. Here’s what I see right now that might work, despite the overall red landscape on Wall Street.
NVCN – News winner with heavy volume to support it. Gap recovery in play above $3.30’s for a run back into the $4’s. Discipline stop loss required if this shows weakness into Wednesday’s afternoon.
ACRX – Bullish engulfing candle in play above $3.20 for a move to $4 on gap. History of carrying a move once it starts from back in May and again in August illustrates this is likely not a 1-day rally and fade. Potential for breakout above the upper $4’s if it can challenge middle $4’s.
ASTC – Recent moves show the ability to carry the news pop for 1-day but today it’s really weakened. Hard to know if it’s the overall market or something else, but if $2.80 holds it’s worth a shot for the low $3’s to profit.
VTVT – Very strong retracement pattern against a very red landscape in general. I’m interested in the middle $3’s for a move above $4.50’s, which seems to be what it wants headed into the weekend, otherwise it’d be selling with the overall market given how much it’s up lately.
The diary of a real $ trader,