July 22, 2019
Hello there! Below is your edition of this week’s newsletter. We hope you have a great trading week!
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Current Futures
DOW:
-3 (-0.03%)
S&P 500:
-1 (-0.02%)
NASDAQ:
+11 (+.04%)
BITCOIN:
+175(+1.67%)
GOLD:
+1.3 (+.1%)
State of the Markets
Chop would be the word I would use to best describe the action we saw alst week. This market is so susceptible to any political, or economic news. The market made new all-time highs this past week, entirely off the news that interest rates are set to be cut. Initially the anticiaption was that rates would be cut .25%, but now we are already starting to factor in the potential for a .5% rate cute, which in my opinion is truly absurd. The rate cute is set to happen next week, so we have a while to wait for that. Everything is chopping hard here at all-time highs, but this past week was a bearish “outside week” for indexes and it does have me a bit concerned and even bearish especially with some conflict going on with Iran currently. I anticipate overall a red week from markets just simply based on those two factors but there will be so much more that develops day to day. Like I said our markets are literally turning on a dime right now on any ounce of news they can get their hands on.
Stocks To Watch This Week
NASDAQ
Not often i break down a major index but this warranted it. This is the NASDAQ here that broke under a critical 30-day trendline on Friday and washed out under critical levels in after-hours on Friday. This is a very significant reversal indicator from markets, and I do anticipate we get some short term follow through to the downside on this trendline breakdown. I anticipate that markets will bounce and retest this trendline which at that point would be a resistance level, and that would be the bounce to look to size in to the short side.
SENS
Senseonics Holdings, Inc. ($SENS) is a Medical Appliances & Equipment company in the Healthcare sector. This penny stock gapped down last week after announcing a 25 million public share offering.
It gapped down to just around the $1.00 level for a few days after the news, but has started to test its gap-to-fill from last week. As the stock is beginning to wedge on a multi-day ale, I expect a big breakout to the upside due to this stocks’s high 25% short float. I plan to day trade this over the $1.20 natural resistance level for the technical breakout!
MGI
MoneyGram International, Inc. ($MGI) is a Credit Services company in the Financial sector. This low float penny stock was able to break out of its downtrend last week, after releasing news that the company has sealed a contract with South Korean start-up company Sentbe. This will increase MoneyGram’s exposure to the new region, thus being a positive news catalyst. It made a nice move on Friday from the news momentum, and it’s low-float makes this prime for a breakout, I plan to day trade this over the $2.30 natural resistance level for the breakout pattern over Friday’s high of day!
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