Dear Momentum Stocks Weekly Subscriber,

The bulls registered back-to-back wins for the first time this month following Wednesday’s surge past resistance. The slicking-talking pros were betting against the financial stocks coming into first-quarter earnings season, but I had a more favorable view. The group has let the market down in the past, but the two-day rally has been a relief following a tight trading range.

The Dow galloped higher by 187 points, or 1.1%, to settle at 17,908. The blue-chips opened at 17,741 and held 17,800 throughout the session. This level is now fresh support, followed by 17,700-17,600. The bulls pushed a high of 17,918 and are within spitting distance of hitting 18,000. A move above this level could lead to a push towards 18,200-18,350.

The S&P 500 jumped 20 points, or 1%, to finish at 2,082. The index traded in positive territory throughout the session, with the high reaching 2,083. I mentioned that additional hurdles were at 2,075-2,080, and the close above the latter was a beautiful thing. This clears the way for a run at 2,100-2,125.

The Nasdaq surged 75 points, or 1.6%, to end at 4,947. Tech blasted past the 4,900 level after opening at 4,904. The run to 4,951 and close above 4,900 were very bullish developments that should get 4,975-5,025 back in the picture. Support has moved up to 4,900-4,875.

The Russell 2000 roared higher by 24 points, or 2.2%, to close at 1,129. The small-caps led Wednesday’s rally and went out at their peak. The index opened at 1,106, and I said that a move past 1,110 would likely get 1,120-1,125 in motion. The close above the latter was a very bullish sign that could lead to 1,140-1,150.

The S&P 500 Volatility Index ($VIX, 13.84, down 1.01) stayed flat as a pancake following its dip to 13.60. The bulls are approaching my near-term target of 13.50-12.50 and, from there, I will reassess the situation. Resistance is at 14.50-15. Yesterday’s high was 14.53.

From desk to press, futures look like this: Dow (+6); S&P 500 (-0.25); Nasdaq 100 (-1.75); Russell (-1.6).

Momentum Stocks Weekly Play List

All prices given in this update are current as of Apr. 13, 2016. I hereby disclose that I will be participating in the following trade(s).

The Momentum Stocks Weekly Closed Trade Track Record is 2-8, for an 20% win rate for 2016 (146-33, or 82% win rate, overall since the start of 2011)

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

 

Lattice Semiconductor (LSCC, $6.36, up $0.99)

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

Lowered Price from Selling Options: N/A

Exit Target: $9.00

Return: -6%

Stop Target: $3.50 (Stop Limit)

Action: Shares surged 18% yesterday after it was reported that a Chinese company had taken a major stake in the company. I have mentioned that LSCC is my favorite takeover target this year.

Resistance is at $6.50-$6.75. Fresh support is at $6.25-$6.

 

Planet Fitness (PLNT, $15.34, down $0.09)

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-$14.75. Resistance is at $15.50-$15.75.

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

 

Rave Restaurant Group (RAVE, $5.25, up $0.22)

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

Lowered Price from Selling Options: N/A

Exit Target: $20.00

Return: -62%

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: Shares are holding their 50-day moving average by a penny. Resistance is at $5.50-$5.60 and the 100-day moving average. Support is at $5.15-$5.

 

Trade on!

Signed

Rick Rouse
Editor
Momentum Stocks Weekly