Day Trading Watchlist for 9/17/14

September 17, 2014

Tomorrow is a Fed day, so the market will be choppy. On days like this I like to close out most if not all of my positions before the 2pm official statement just in case the market gets wild.

A lot of momentum stocks have broken their short term uptrends yesterday, but bounced today. IMO the bounces were fairly weak. I suspect that the small cap stocks may once again be in a topping pattern and could repeat what happened earlier this year. If so, there could be a boatload of short opportunities out there.

Here are a few stocks where there was a pullback and bounce today.  I'm going to be looking for lower highs and diminishing volume for a potential short. We may or may not get it. The stocks could rip up and get strong again. It may happen after the Fed decision or after the Alibaba IPO… but this is just an idea I have on my radar this next few days.

TSLA - 272 seems to be a big support/resistance level on this one.

CTRP - Watching the 64 level here

FB - broke the uptrend. It made a nice rip back today, but a failed retest of the highs might mean this could be a good short.

TWTR - Very correlated to FB. Similar setup.

YY - Watching for a failed retest of 90. If Chinese momentum stocks start falling after the BABA IPO, I think this one could get hit hard.

Remember these stocks listed above may not pull back and can continue to consolidate. If so, the short play probably won't work. But be patient because there is a lot of news this week and if these do crack it may not be until later in the week or next week. Here are more ideas I'm following:

RCPT - watching for this uptrend to break down

ADBE - Came out with earnings after the bell today. The reaction was not good. Short biased.

AVNR - Day 2 of a big breakout today. A little weaker today but have a plan for both long and short action.

SINO - The nutty momentum stock of the week! This one has an under 2M share float and traded over 16 times that number of shares today. That's major float rotation. It's probably nowhere near done yet.

INVN - This one has a strong fundamental story and the long tailed candle today is an indicator of a reversal. I'm interested in r/g and potential swing trade setup.

ETN - This stock, onced loved by analysts, is now beat down following a dismal last quarter. Notice how it looks like its double bottoming. Same setup as INVN and potential swing trade.