So the North Korea stuff didn’t really materialize into anything substantial today, Trump was well behaved, and the market stabilized and rebounded as it always does, surprise surprise. I was worried it’d turn into an ETF/commodities day, but fortunately it didn’t and we had some good plays and some even better closes to set tomorrow up nicely. Lets take a look at a few.
JUNO: This one got out of control…another 25% today and now 40%+ on the entire move, pretty nuts. Just about everyone on the planet wanted the short today it felt like, which is likely why it didn’t work. I took a few papercuts on it short mid morning, and then got it all back & then some on an afternoon long actually. After hours it got some CNBC coverage and popped quite a bit. What I think happened was a good amount of people swung this short based on the close (it faded late day and was very weak into the bell so shorts were liking what they were seeing), and then the CNBC pump caught everyone with their pants down and they had to cover. This is getting really extended now and will provide a good short soon, I just hope we’re not in for another nutty day & 50 handle first before it dies. Tomorrow’s open will be telling for how this trade is going to work.
FSNN: We call these “zombie pigs”…the thing gapped up to $3 on Monday and totally died, met with more weakness this morning, then right around 11am she came back from the dead, ramped, and by EOD we’re a buck higher and back at $3. And honestly, the buying this afternoon didn’t really feel like a covers squeeze from Monday shorts. It felt like methodical buying from a real bidder with plans for this thing. So I’m going to respect it tomorrow morning, There’s no real resistance now until high 3s. ~3.80ish which likely means 4. Not really sure what to expect from this one tomorrow that ramp today caught me off guard, we’ll see what the open brings.
DRYS: I forgot this name existed for a while lol, it’s been totally dead to me since Kalani left the scene, I haven’t touched it. Not sure what was up today it was all over the place. They announced the rights offering, then there was a big late day ramp, then it gave it all back after hours. I see some guys saying it’s worth $7-8/share, I know some who were shorting that late day spike today, know others who were getting long to swing, and on top of all that clusterf*$#lk…they report earnings tomorrow after the bell! Looking at the daily, there’s some serious support at $3 and the chart really does have “the look” like it wants to rip higher now. I’m not sure I’ll play this at all tomorrow, but if I was going to, the play is probably to scoop a weak open with a risk on 3 o/u.
BBY: This one played out just like MOMO on that first big gap down day we were all trying to bounce it. On BBY here again, everyone was trying to bounce it today so it just wasn’t going to happen. I’ll be watching tomorrow for a weak open to scoop dips and get that rebound.
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See you out there!
– D
great work buddy.