June 2, 2019
State of the Markets
U.S. stocks finished lower on the week yet again, making it 6 red weeks in a row from the DOW, the longest res streak since 2011. This week had a totally new complication thrown in the mix, and that was tariffs amongst the U.S. and Mexico. The China U.S. drama continues, and also heated up even more this past week. There is a ton of opportunity both long and short in these markets. From a longer term standpoint, you have to just sit back and enjoy the market sell off, because if you were prepared for it like we have been, that means you have a lot of cash itching for you to put it to work. In the coming weeks, getting “starter” positions on some key names will be important. From a day trading standpoint, we are in heaven as the range and momentum patterns have been almost automatic for us to lock in profits on. It’s a great time to be a KAF Investing chat room member! We are playing options, pennies, mid caps, large caps, and everything in between.
“U.S. stocks, Treasury yields, and oil prices all dropped on Friday after President Trump surprised the market by threatening to impose a 5% tariff rate on all goods imported from Mexico. Friday’s 1.3% decline in the S&P 500 sent it below its 200-day moving average (2776) and extended its weekly decline to 2.6%.—The Dow Jones Industrial Average (-1.4%), the Nasdaq Composite (-1.5%), and the Russell 2000 (-1.4%) extended their weekly losses to 3.0%, 2.4%, and 3.2%.—The 5% tariff rate will go into effect on June 10 and will increase incrementally during the summer to reach 25% on Oct. 1.”
KAF Stock Picks
Written By: KAF – Lead Stock Trader
Universal Display Corp ($OLED) is in the organic light emitting diode space, more commonly known as OLED. I really love this company, and this space a lot as their technology has become the main staple in so many different commerical, research, and even retail spaces. About two weeks ago they released some very strong Q1 earnings, and the stock initially spiked all the way to $190, but has been selling off ever since. This name is getting close to a major reversal and anything sub $150 for an entry is a gift here in the near term. I like this to reverse and fill a few gaps on the chart up to $160, from there it will need overall market strength if this wants to continue it’s road to $190, but it is certianly in the cards. As for an entry, notice the strong and clean downtrend from Friday. I am expecting this to get explosive up and over that downtrend, and that should initiate the gap fill back to $160.
Canada Goose Holdings ($GOOS) is a clothing company specializing in coats. The company is based out of Canda but has stores all over, including in China. This sector and clothing has become a huge trend recently, and the recent earnings miss has set up for a very nice opportunity to play this double bottom, with a $36.50 breakout, and price target up to $42.
Penny Stock Picks
Written By: CQB – Penny Stock Moderator
AVEO Pharmaceuticals ($AVEO) is a Biotechnology company in the Healthcare sector. This penny stock had a monster day last Friday, heading from lows of $0.64 to highs of $1.00 in after-hours trading. The steady uptrend and bullish sentiment is attributed to a press release last week, stating the company will present in the upcoming BIO International convention. I expect this uptrend to continue into Monday, and plan to day trade this over the $1.00 natural resistance level!
Genocea Biosciences, Inc. ($GNCA) is a Biotechnology company in the Healthcare sector. This low-float penny stock went parabolic last Friday morning, getting halted a few times on its way up to a high of $8.00 (from lows of $5.00). The huge move came from the Journal of Clinical Oncology selected the company’s trial data to present in an upcoming ASCO annual meeting. I expect momentum to continue into Monday, and plan to day trade this over the $6.25 natural resistance level!
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