Fiat Chrysler Automobiles N.V. (FCAU)
I like this as the main “real stock” to watch this week fore a potential swing trade. Chart is very strong, making new 52 week highs almost every day, plus the big auto show is going on right now for a potential catalyst. I also like this as a swing trade because it gives solid risk to reward to the upside but is still lower priced. Perfect for traders with smaller accounts that don’t want to trade the super crazy volatile stocks like ETRM yet.
EnteroMedics Inc. (ETRM) / Gevo, Inc. (GEVO)
Speaking of ETRM, this is the latest hot “reverse stock split” play we have been following lately. We will be going over stock splits, specifically reverse splits in this weeks StocksToTrade Pro Strategy Session. If you are curious of the potential in these stocks, bring up the chart of IDXG and ETRM. Huge explosive moves to the upside then typically crack back for solid short entries as well. Our first potential entry on ETRM was at $2.60 on Thursday. I think ETRM will have one more rip to it, I know its hard to believe but there are still shorts trapped in this stock. Then mid week this will most likely run out of steam, set a top and setup for the backside short. Nothing wrong with watching and letting it rip, then preparing for the short. Also will be watching GEVO for the next big move. Both of these stocks are junk and reverse splits. Not at all investments nor long term holds, purely trading vehicles.
CTI BioPharma Corp. (CTIC)
Nice chart break of $5.00 with recent news out. As long as this gets some aggressive volume, and holds above $5.00 I think there is solid potential for this to grind back to $6.00+. As always the plan is to hold $5.00, if it cracks back under $5.00 it does not matter what the news is, this becomes an ignore. Only trade positive price action, with above average volume. All easily track able in StocksToTrade.
Zafgen, Inc. (ZFGN)
Nice breakout on Friday. We will be watching this every day this week for the “Weak open, red to green move”. This is a textbook setup discussed almost every day in StocksToTrade Pro. If you are looking for advice and guidance in making trade plans on volatile stocks that is our specialty in the Pro program, click here for info.
Netflix, Inc. (NFLX)
This is the higher priced swing/longer term idea. Obviously everyone knows this company, but I’m a huge believer and the chart really reminds me of NVDA from a couple weeks ago. If you remember we picked up NVDA around $100 before its move to $120. I will be closely watching 52 week highs on this stock especially as we approach all time highs on the SPY/DJIA.