Thanks to the dismal job report for May that was released on Friday, traders and investors started Friday with a panic sell-off. Followed by a timely news by the Fed to calm the markets by hinting that the rate hike is off the table caused a modest rebound.
Before the start of memorial day week, I said that market had historically started declining on the memorial day week which didn't happen this time around and it went sideways. This shows the indecision that currently exists in the market.
However, we are still in an uptrend since May 19th and the potential to break year high still exists. Next week shall be fairly interesting as SPY will look to break all time high and if it fails to do so then we may see a retrace straight back to low $200s in the coming weeks.
Given the Fridays panic, investor rushed to Gold and Silver stock/ETFs causing several mining companies to close 5%+ on Friday. I don't normally trade such commodities so my surf list would be a little bit biased towards companies in Technology and Bio Technology sectors.
NASD:LBIO [Lion Biotechnologies, Inc.]
Lion Biotechnologies went parabolic on Friday after it announced it has attracted $100 million in investment through a private placement of shares by selling 20 million of common and Series B preferred shares. Even though the company has been consistently bleeding cash quarter over quarter for it's R&D efforts, analyst have an average price target of $16. I traded this few times on Friday both long and short, I'll be watching this to see if the momentum is still there to take this over $10 on Monday where I'll join the trend. Otherwise this would be a great short candidate.
NASD:RYI [Ryerson Holding Corporation]
After few days of profit taking RYI is back on track with a nice 5% gain on Friday. I'll be anticipating $15 break if the momentum is still there on this rebound.
NYSE:AFI [Armstrong Flooring, Inc.]
I mentioned AFI last week that this was a great candidate to go long in anticipation of $18 break and that did happen. Hope you were able to make some dough if you participated. I still think this stock can go higher to test $20s. I'll be looking for $18 to hold for an entry next week.
NASD:GOGO [Gogo Inc.]
I had this on my watch from last week and didn't see much of a follow through after the initial spike as it started trading sideways for the rest of the week. On Friday, the company said in a statement that it lost a contract to it's rival and the partnership with American Airlines may not last longer than it had hoped. I shorted this stock on Friday at $10 when it had a quick rebounded (likely shorts covering) and then covered it all up at $9.60. In hindsight, I should covered end of day. I'll be looking for more shorting opportunities if GOGO sells off on heavy volume next week and cannot hold $9 which is a pretty strong support for this stock as it has held that support price for almost a year now.
Here are other stocks that I've been keeping tabs on and been trading last week and these are still in play for this week.
That's it folks and Happy Trading!
PS: questions? comments? feedback? I'd love to hear them.