Dear Momentum Stocks Weekly Subscriber,
Following some early-morning weakness on Wednesday, the bulls snapped themselves out of a two-day funk to push the market’s prior resistance levels. However, the bears’ stalled attempt at pushing support has kept a tight trading range in play that could continue into earnings season, which starts next week.
The Dow rallied 112 points, or 0.6%, to close at 17,716. The blue-chips traded to a lower low of 17,542 for the week, but support at 17,600 held. The bulls set a higher high than Tuesday, but they failed to clear resistance at 17,750-17,800.
The S&P 500 soared 21 points, or 1.1%, to settle at 2,066. The index slipped two points to 2,043 shortly after the open, but the bulls easily defended support at 2,040. The rebound to 2,067 fell shy of resistance at 2,070-2,075, but it keeps these targets on the radar.
The Nasdaq zoomed 76 points, or 1.6%, to finish at 4,920. Tech held shaky support at 4,850 for the second-straight session after opening at 4,849 and not looking back. The run to 4,921 and close above 4,900 was a bullish setup for a possible push towards 4,950-5,000.
The Russell 2000 added nearly 13 points, or 1.2%, to end at 1,108. The small-caps kissed 1,094 during the opening minutes of the session, with support at 1,090 hardly being threatened. The one-point loss was quickly forgotten following the move back above the 1,100 level. The intraday high reached 1,109, and a move above 1,115 should get 1,120-1,125 in the mix.
The S&P 500 Volatility Index ($VIX, 14.09, down 1.33) fell nearly 9% and, more importantly, closed back below 15. The bears made a growl to 15.98, but backup resistance at 16.50-17.50 held. Support remains at 13.50-12.50.
From desk to press, futures look like this: Dow (-86); S&P 500 (-12); Nasdaq 100 (-23); Russell (-7).
Momentum Stocks Weekly Play List
All prices given in this update are current as of Apr. 6, 2016. I hereby disclose that I will be participating in the following trade(s).
The Momentum Stocks Weekly Closed Trade Track Record is 1-8, for an 11% win rate for 2016 (145-33, or 81% win rate, overall since the start of 2011)
View the entire list of open and closed trades by clicking here.
Lattice Semiconductor (LSCC, $5.41, down $0.01)
Original Entry Price: $6.77 (12/29/2015)
Lowered Price from Selling Options: N/A
Exit Target: $9.00
Return: -20%
Stop Target: $3.50 (Stop Limit)
Action: Support is at $5.50-$5.25 and the 50- and 100-day moving averages. A close below the latter could lead to $5. Resistance is at $5.75, followed by $6.
Planet Fitness (PLNT, $15.42, down $0.22)
Entry Price: $17.85 (9/16/2015)
Lowered Price from Selling Options: N/A
Exit Target: $22.00
Return: -14%
Stop Target: $12.00
Action: Support is at $15.25-$15 and the 100-day moving average. Resistance is at $15.75-$16.
You can read my write-up on PLNT in the Nov. 16 Issue.
Rave Restaurant Group (RAVE, $5.05, down $0.01)
Original Entry Price (First Position): $13.92 (7/9/2015)
Lowered Price from Selling Options: N/A
Exit Target: $20.00
Return: -64%
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: -57%
Stop Target: $4.00
Action: Support is at $5-$4.75. Resistance is at $5.25-$5.50.
Huttig Building Products (HBP, $3.79, down $0.01)
Original Entry Price: $4.00 (8/13/2014)
Lowered Price from Selling Options: N/A
Exit Target: $4.15
Return: -5%
Stop Target: $2.00 (Stop Limit)
Action: Resistance is at $3.80-$3.90, and a move above the latter could lead to $4 or higher. Support is at $3.60.
Trade on!
Rick Rouse
Editor
Momentum Stocks Weekly
