Although the markets are in still in a correction in my view, I turned short term bullish on Friday and positioned accordingly. I bought shares in $ACAD as I really like the set up and think that it can push to $20.00 next week if the markets bounce. I also added long positions in $FXI and $IYR via call options looking for mean reversion plays.
I might have gone a bit too heavily long on Friday especially since the close on Friday was not as strong as I was expecting. Plus the after hours price action in futures is also not very encouraging at the moment although there is lots of time for this to turn around before tomorrow's open. I still firmly believe that we will get a bounce, even if not a powerful one, based on the following evidence:
While the Russell has made 3 successive lower lows with a bullish doji on Friday, the McClellan Oscillator has made 3 higher lows! I think this will likely result in a 1 - 2 day bounce:
So despite being in a correction; I do not want to initiate short positions here. Further although I will be looking to make long plays; I have shortened my time frame and consequently my profit expectations. Instead of looking for 3 to 5 day plus swings and trading off the daily chart; I will now be looking to make over night plays to 2 day swings at most off the 15 minute chart while also using tighter stops.
Here are my top watchers for tomorrow: $XONE, $PRLB (3-D Printing), $TVL, $NXST (TV-Broadcasting), $INFI, $ACAD, $AMRI (Bio-techs), and $STAA
Sorry I couldn't post charts tonight but I'm really pressed for time.
All the best with your trading next week!