CAMARO’s Watchlist for 8/28/13
Today SPY opened lower before reversing back up above its 100ma before a late end of day selloff to close us under the 100ma for the 3rd time this year. Today’s piercing candle could turn into the new pivot low and lead to a trend higher but I am not fully convinced at this point to go balls to the wall long so for the moment I am just sitting on my hands looking for small day trades until I feel more confident in the markets direction.
Tomorrow could very interesting and should very volatile as the VIX is still trading just shy of 17 and we have some headline risk coming out of Syria that has spooked the market the last few days and could could more noise on Thursday. Tomorrow morning we have two key economic reports with GDP and Jobless claims being released in premarket trading. Those two reports can be market moving reports so I expect to see a significant gap higher or lower tomorrow. I will be curious to see if a good report is bullish or bearish for the stock market, this should help gauge whether QE tapering is expected or not expected in September.
Today bio-tech stocks showed relative strength so in the event that the market is green tomorrow I will focus on bio-tech names for continued momentum.
GILD - Probably the best setup of the group as its trading just shy of 52w highs and has been holding up fantastically the last week or so while markets have faded. I like this one above 61 tomorrow with a 62$ target. The option premium is low here so no reason not to go ITM with the 60x calls in my opinion.
CELG - Very similar pattern to GILD on a daily chart it just wasn’t as strong today however it was able to close up 1.5% and engulf yesterdays selloff. I think CELG can retest monday’s high tomorrow up at 143. Its to break above 140 on a 15min chart for me to get involved.
If the markets are weak tomorrow I will likely just looking for short setups onSPY and look for a move to 161.50ish on SPY. Otherwise I’ll sit on my hands and not force anything.
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