The McClellan Oscillator or $NYMO finished Friday at -42.77, which is a bearish reading. We still have not hit extreme oversold levels, so I am expecting some further downside early next week. All of my breadth indicators are looking very weak/bearish including $NYAD at -1427, $TICK at -483, & the short term trading index $TRIN closing above 1.5. If I see these indicators signal extreme oversold readings early in the week, I'll likely buy the dip via $SPXL. For those unfamiliar with $SPXL, this is a 3X levered ETF of the S&P 500. I will keep my stop tight, since levered ETF's are for trading only due to decay & tracking errors. If holding for a long time, you are almost guaranteed to lose with these trading vehicles & they certainly are not for the faint of heart. I put on a half position in Gold (via $NUGT) right before the close on Friday due to the reversal/hammer candle it put in, but that is my only open position over the weekend. Looking ahead to next week...
Five Below, Inc. was on my radar all of last week. $FIVE had a recent golden cross on it's daily chart & has been retesting it's 200 simple moving average after a recent breakout. Stochastics is showing a bullish cross & RSI is perking up. $FIVE closed positive on Friday, which was impressive given the blood bath of the overall market. I like this above $38 with a first target of $40. Stop will be placed right below the 200 day moving average at $36.80. Earnings aren't until 9/8.
Cyber-Ark Software has been acting much better recently as all indicators are suggesting a short term bottom. This is a cyber security play, and this entire space/sector has been very hot for some time now. $CYBR is sitting right underneath it's 50 day moving average. If we can clear this with conviction this thing could really pop. There is also a gap to fill at $65.58. Stochastics & MACD are both bullish and pointing up. I like this above the 50 day moving average at $63.29, with a stop placed at $59.50. Earnings are 8/11.
Calithera Biosciences, Inc. is my speculative pick for the week. $CALA traded above $30/share briefly back in December 2014, but has since traced back all the way to $6.60. Over the past few weeks it has been perking up & closed Friday at $9.03, which is actually above it's 50 day moving average at $8.98. RSI is pointing northward & Stochastics look like they want to make a bullish cross as well. I like this above $9.15, with a stop placed at $7.85.
JinkoSolar Holding Co. is in the Chinese solar sector. Chinese markets have been very volatile as of late. In my opinion, I see them continuing to breakdown after an astronomical rise the past 1.5 years or so. $JKS closed below it's 200 day moving average on Friday & looks like it's ready to retest the $23 area with a possibility of breaking down. Both MACD & Stochastics had a bearish cross recently. Keep an eye on oil prices whenever watching a solar name (solar companies move in conjunction with the price of oil traditionally). I will be looking to short this name at $23.56 with a stop placed at $24.85.
Goldman Sachs failed to put in a new high recently & looks like it wants to break down. $GS had a bearish cross on both MACD & Stochastics in the past few trading days. It also closed below it's 50 day moving average. I will be looking to sell it at $207 with a stop at $211.50. First target is $204. 2Q15 Earnings have already been reported.
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