Dear Momentum Stocks Weekly Subscriber,

The bulls held positive territory into Wednesday’s close, with tech leading the way higher. However, the push towards resistance stalled as Wall Street waited for news on interest rates from overseas.

The Dow gained 36 points, or 0.2%, to close at 17,000. The blue-chips traded down to 16,947 intraday, with support at 16,900-16,800 holding. The run to 17,048 fell shy of resistance at 17,100-17,200.

The S&P 500 advanced 10 points, or 0.5%, to end at 1,989. The index held positive territory throughout the session and tested a high of 1,992. Resistance at 1,990-2,000 was challenged but not cleared. Support remains at 1,975-1,970.

The Nasdaq climbed 25 points, or 0.5%, to finish at 4,674. Tech was slightly weak on the open after falling a six-pack to 4,642. Shaky support at 4,625-4,600 is waiting in the wings on another move below 4,650. The rebound to 4,676 pushed resistance at 4,675-4,700. A close above the latter would be a bullish signal for Friday and next week.

The Russell 2000 added nearly 5 points, or 0.5%, to settle at 1,072. The small-caps stayed strong throughout the session despite the bears’ one-point punch that held 1,067 shortly after the opening bell. Support at 1,065-1,060 easily held before the index reached a peak of 1,074. Resistance is at 1,075-1,080, and a close above the latter would be a bullish setup.

The S&P 500 Volatility Index ($VIX, 18.34, down 0.33) closed lower following three up-days in a row. The bears pushed a high of 19.11, with resistance at 19.50-20 holding. The low of 18.31 fell shy of pushing support at 17.50.

Yesterday’s tight trading range wasn’t fun to watch, but it offered some clues on how the rest of this week and next might play out.

From desk to press, futures look like this: Dow (+124); S&P 500 (+16); Nasdaq 100 (+40); Russell (+9).

Chapter 1. Momentum Stocks Weekly Play List

All prices given in this update are current as of Mar. 9, 2016. I hereby disclose that I will be participating in the following trade(s).

The Momentum Stocks Weekly Closed Trade Track Record is 1-2, for a 33% win rate for 2016 (145-27, or 84% win rate, overall since the start of 2011)

View the entire list of open and closed trades by clicking here.

 

Hansen Medical (HNSN, $2.54, down $0.03)

Original Entry Price: $4.50 (2/2/2016)

Lowered Price from Selling Options: N/A

Exit Target: $6.00

Return: -44%

Stop Target: $2.00

Action: Support is at $2.50-$2.35 and the 50-day moving average. Resistance is at $2.75-$2.80 and the 100-day moving average.

 

Lattice Semiconductor (LSCC, $5.80, down $0.03)

Original Entry Price: $6.77 (12/29/2015)

Lowered Price from Selling Options: N/A

Exit Target: $9.00

Return: -14%

Stop Target: $3.50 (Stop Limit)

Action: Support is at $5.50-$5.25 and the 50- and 100-day moving averages. Resistance is at $6.

 

Planet Fitness (PLNT, $13.80, down $1.01)

Entry Price: $17.85 (9/16/2015)

Lowered Price from Selling Options: N/A

Exit Target: $22.00

Return: -23%

Stop Target: $12.00

Action: Support is at $13.50-$13. Resistance is at $14-$14.25. Yesterday’s 7% pullback was attributed to a well-known short-seller taking a position. The short-seller is questioning the company’s business strategy, but PLNT’s upcoming earnings could help clear this picture up. I like the stock going forward, and I will provide some numbers once the company announces a release date.

You can read my write-up on PLNT in the Nov. 16 Issue.

 

Rave Restaurant Group (RAVE, $5.21, up $0.01)

Original Entry Price (First Position): $13.92 (7/9/2015)

Lowered Price from Selling Options: N/A

Exit Target: $20.00

Return: -63%

Stop Target: $4.00

 

Original Entry Price (Second Position): $11.70 (8/17/2015)

Lowered Price from Selling Options: N/A

Exit Target: $13.00+

Return: -55%

Stop Target: $4.00

Action: Resistance is at $5.50-$5.75 and the 50-day moving average. Support is at $5.25-$5.

You can read my most recent write-up on the company in the Dec. 24 Issue.

 

Rigel Pharmaceuticals (RIGL, $2.36, up $0.09)

Original Entry Price: $3.51 (6/2/2015)

Lowered Price from Selling Options: N/A

Exit Target: $4.00-$5.00

Return: -33%

Stop Target: $2.00 (Stop Limit)

Action: Resistance is at $2.50-$2.60. Support is at $2.35-$2.25.

 

Psychemedics (PMD, $13.54, up $0.09)

Original Entry Price: $15.67 (5/5/2015)

Lowered Price from dividends: $15.07

Exit Target: $15.75 (Limit Order)

Return: -10%

Stop Target: $7.75 (Stop Limit)

Dividend Yield: 4.7%

Action: Resistance is at $13.50-$4. Support is at $13.25-$13.

 

Huttig Building Products (HBP, $3.70, down $0.01)

Original Entry Price: $4.00 (8/13/2014)

Lowered Price from Selling Options: N/A

Exit Target: $6.00+

Return: -8%

Stop Target: $2.00 (Stop Limit)

Action: Resistance is at $3.70-$3.80. A move above the latter could lead to a run past $4. Support is at $3.50-$3.40 and the 200-day moving average.

 

Rambus (RMBS, $13.07, down $0.08)

Original Entry Price: $17.83 (11/14/2011)

Lowered Price from Selling Options: $16.38

Exit Target: $15.00+

Return: -20%

Stop Target: $9.00

Action: Wednesday’s high reached $13.34. Resistance is at $13.25-$13.50. Support is at $12.75-$12.60 and the 200-day moving average if $13 fails to hold.

 

Trades on Hold (2): These are trades that are still open in the portfolio but are down from the original recommended price. These trades are on “hold” and are not a buy until I bring back coverage of the stock. This means I would not open any new positions. I’m still keeping track of the trades and will record the results accordingly when a trade closes. I do not recommend adding to these positions or opening new positions.

Zynga (ZNGA, March 2014) — Continue to hold.

Relypsa (RLYP, January 2015) — Continue to hold.

Trade on!

Signed

Rick Rouse
Editor
Momentum Stocks Weekly