VOLATILITY FRIDAY: THE LONG AND THE SHORT OF IT
Disclosure: I am/we are long NSM.
I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it. I have no business relationship with any company whose stock is mentioned in this article.
Additional disclosure: I AM SHORT TWTR.
Volatility continued on Friday -- what to make of it?
We have watched CRASHES occur in individual stocks -- from VNR last week, CDE this week, TWTR today, SHLD (reverse-crash?). I think the market is very thin -- and when bad (or good) news hits, there are not many buyers to cushion small panics.
We thought that Donald Trump might save Twitter -- which we feel is a very vulnerable company. What it provides can be provided easily by other players that are better positions and stronger -- and not a one-horse show like TWTR. Until Trump came along. Our thought: can President Trump save this company? Maybe not.
TWTR ruptured support today -- and we rushed out to SHORT more shares.
When we awoke to look at the new, we were disturbed by another headline: "SEARS SOARS". We are short SEARS (NASDAQ:SHLD). It was up 24% after "ABYSMAL EARNINGS" were supplemented with vague promises from management -- and promises to sell everything in their company that was valuable and lay-off thousands.
I was afraid to look at the SEARS chart, expecting a dismal trashing of our short position -- didn't happen. A 24% gain didn't do much damage to this short position.
We have a few new LONG positions we also really like.
We've been waiting a while for X to turn TRADING TRIGGER positive again. It has; as has NSM -- also one of our favorites here.
The chart above shows how breaking through near-term resistance IS a pretty powerful BUY SIGNAL.
Another stock we love is giving a TRADING SELL SIGNAL. This is good. We have no position in IRBT, I-Robotics. Now it will correct a bit. We want to get in. We have a BUY ORDER at 63.17.
Here is a list of Trumpet 3 trades today -- AND a list of PENDING TRADES (long and short) at specific Resistance (NASDAQ:LONG) or Support (SHORT) levels.
|TRUMPET 3 TRADES|
|X||37.6||38.19||30.71||5||Long||US Steel Corp|
|ARNA||1.47||1.67||1.35||-21||SHORT PENDING @ 1.35||Arena Pharmaceuticals|
|AZO||740.65||818||681.01||-1||LONG PENDING @ 818||Auto Zone|
|CDE||9.44||12.09||8.7||-5||Long PENDING 12.09; Short Pending 8.7||Coeur D'Alene Daily|
|FSM||6.66||6.91||5||3||Long Pending @ 5.00||Fortuna Silver Mines|
|ICON||9.64||10.73||7.29||-5||Long Pending @ 10.73||Iconix Brand Group|
|IRBT||54.31||63.17||28.02||-5||Long Pending @ 54.31||I-Robotics|
|MTZ||38.85||41.9||34.35||1||Long Pending@ 41.9||Mas Tec|
|NOG||3.3||4||2.65||-5||LONG Pending @ 4.0||Northern Oil and Gas|
|PBR||10.42||11.56||9.14||-7||LONG Pending @ 11.56||Petrobas Petroleum Brasil|
|RIG||13.35||16.16||8.68||-5||LONG PENDING @ 16.16||Transocean Ltd.|
|SGYP||6.17||7.15||5.43||-5||LONG PENDING @ 7.15||Synergy Pharma|
|TTI||4.94||5.27||4.31||-11||SHORT PENDING @ 4.31||Tetra Technologies|
|WDRW||9.0567||10.63||8.9051||-25||SHORT PENDING @ 8.9051||* Regions Banks Bearish ETF 3x (NO)|
|WMB||28.44||32.69||19.6||-1||LONG PENDING @ 32.69||Williams Companies|
The market is going higher. TRENDS are +15 on the day; +6 on the half-week. TEMP is a bullish 81.7°; TRADING TEMP a very war 77°.
We are LONG the UDOW. We have a trading system to regulate anew our UDOW trading.
Now let's look at pictures of some of today's trades and signals.
AMBA, Ambarella, is a BUY.
We're not sure what to make of the biotechs. Some are moving up. Some of our strongest SHORTS are from the biotechs also. KERX is a BUY.
NBIX is a BUY.
LABU SEEMS to have made a long-term breakout. But we've been fooled before.
SRPT is struggling to hold its rally together.
TWTR is a SHORT. Here is a fuller picture.
NDLS is a SHORT.
PEIX is a BUY.
RGLS. This should be above with the biotechs. SHORTSELL.
RESTORATION HARDWARE is a SHORTSELL. It broke through Support, which is a statutory SELL-SIGNAL.
And, finally, an update of our LONG POSITION in TUR, Turkey Stocks Bullish ETF.
A lot to look at. Have a good weekend.
Disclosure: I am/we are short TWTR, SHLD, NDLS.
Additional disclosure: I am long X, NSM