Facebook is already showing a 20% gain since our buy entry, but bullish price action means we are looking to buy more shares on a pullback. If $FB retraces to the 20-day EMA on the daily chart below, at which time we plan to add another 25%, giving us a 50% position.
$GOMO is a Chinese internet stock and a recent IPO. It only has a float of 4 million shares, so it is a fast mover. We are playing it for its relative strength (has a 96 ranking). We are looking for the uptrend to resume after a few weeks of rest.
The next setup is in the recent IPO $TWTR. We like the price action on the hourly chart (bit of an inverted head and shoulders). We are looking for a move back above the 20-day EMA, which if attracts decent buying volume could lead to a break of the dirty downtrend line drawn on the chart below.
NASDAQ 100 ETF ($QQQ) is nearing support of the 50-day MA and prior swing lows at $85. The next support level is from the basing action in October and November at support zone 2 around $83.
On the weekly chart, we see that $EWW formed a bullish reversal candle last week on a pick up in volume. A move above the highs of last week’s reversal candle is a potential buy entry for a starter position.
We have one new official buy setup on today’s watchlist in Aramark Holdings. $ARMK is a recent IPO that is pulling back for the first time after a 30% rally. The buy entry is over the downtrend line of the pullback with a pretty tight stop.
Our December 23 buy entry into Chinese Internet ETF follows through on breakout to new highs with higher than average volume. Lack of resistance means $PGJ is poised to rally higher in the near to intermediate-term.
The first setup is in $LNKD, which put in a nice reversal candle yesterday after undercutting the 200-day MA. We are going with a small position on a slight pullback to the 20-period EMA on the hourly chart, expecting the low of yesterday’s candle to hold.
After stalling out at the highs of the range, $WUBA has pulled back in to the rising 10-day MA. We are placing a simple buy stop order above Monday’s high with a stop beneath Monday’s low. We call these tight setups a GONG (go or no go), because the action should move out right away.
On the stock side we have one new buy entry in Tower International ($TOWR), which has been consolidating in a tight range since August. The 40-week MA has basically caught up to the price action after a lengthy base, so we could potentially see an explosive breakout above $22