After breaking out to a new high early last week, the Nasdaq sold off with heavy volume Thursday and Friday. A choppy market like this can make it hard to find the obvious setups.
Get the 24 Hour Payout Plan NOW
For every stock going up, one is going down. The challenge is sifting through the muck to find the gold.
But trust me…it’s there.
The strongest names are in biotech (and a few small caps).
That’s where I’m seeing the most positive momentum in what’s otherwise been a pretty choppy environment.
So my list this week boils down to the few stocks that have been going up while the market chops. And I’m waiting for each breakout to hold before I buy, because a lot of breakouts have been failing in this market.
I’ve got three names circled from Monday’s watchlist…
NLST
Netlist, Inc. (OTCQB: NLST) is the chart I like most on the list. The trigger is a clean push and hold above $6.60. If it holds there I’m buying, and the next objective is $7.00. Below the trigger, $6.00 is where the setup breaks down.
On Monday it opened at $6.30 and never got above $6.34. Before 9:45 it traded under $6.00, down to $5.85. It closed back above that at $6.08.
So the trigger never traded and the risk area did. I don’t own it until it holds above $6.60.
MRNA
Moderna, Inc. (NASDAQ: MRNA) broke out on October 9. It closed up 14.21% at $225.00, which was the high of the day. What I want next is for it to hold near the top of that range and build a tight flag before the next move.
I don’t chase an extended open. If momentum continues, the objective is $250.00 over the next 1 to 2 weeks.
On October 12 it opened at $224.50 and traded up to $227.46 before 10:25. Then it sold off into the close and finished at $213.74, down 5.00%.
A buyer at the open was down 4.79% by the close. That open was the extended one, and buying it was the chase.
MRNA gave back 40% of its October 9 gain in 1 session, so the flag isn’t built yet. $250.00 is still the objective. I’m not in until the stock holds near the top of the range and breaks out of it.
IBRX
ImmunityBio, Inc. (NASDAQ: IBRX) is the one I’ve been watching closest. I didn’t want to chase it on Monday. What I wanted was a controlled pullback toward $10.00 and an inside day with a balanced candle, meaning a day that doesn’t go anywhere.
The trade is a break above the October 12 high, with $10.80 as the breakout level and $13.00 to $15.00 as the targets if momentum picks up.
On Monday, two of the three happened. It pulled back to $10.05. Its whole range stayed inside the October 9 range, so it was an inside day.
The candle wasn’t balanced. It opened at $10.59 and closed at $10.12, almost at the low. A day that closes near its low went down, and I asked for a day that went nowhere.
So the level is the October 12 high of $10.62. I’m still watching for the move through $11.00. I want the setup to develop, and I’m not forcing an entry on one that hasn’t.
For now, NLST has to hold above $6.60. MRNA has to hold near the top of the October 9 range and build the flag. IBRX has to get through $11.00 on a day I like.
If you’re looking for a simple approach, watch this LIVE webinar with two of my favorite Traders on the planet:
Stay sharp,
Jack Kellogg
*Past performance does not indicate future results
