View: Weekend Chart Update 5/20 : Trade On The Fly

Still more selling in the markets, we have the 200 period ma just below at 1278, the Nasdaq and Dow also are approaching their 200 period ma on the daily charts as well.  News out of  Europe continues to rattle the market and the FB ipo closed barely above the offering price of $38………..the markets are weak for sure.  We will get a bounce, I wouldn’t be surprised to see it come early next week.

A few charts have held up ok and may work well when we bounce, some charts have been destroyed and may be due for a bounce.  Tricky market, trade em, don’t marry em.

CODE has been holding up well, watch the blue lines on either side……..the lower line must hold and it must break and hold above the upper line with increased volume.

 VELT was destroyed last week on good earnings, they had a decrease in their cash and an increase in dso………they have a cc on tuesday to go over some of their financial metrics, fwiw.  Here’s a 15 minute chart. $6 must hold.  The selling may have been over done here, a case of sell first , ask questions later.

Natural Gas continue to climb……….we should see some rotation into the related nat gas stocks and I have included a few that interest me.

BOIL continues to climb.

NKA is in nat gas storage, the chart has held up decently with the market pullback.

XCO, I like this above $8.

CLNE  has been destoyed, support in the $11.50 area and maybe a bounce there.  I would not be early on this one, wait for the bounce and it would be on a very tight leash.

RENN I posted this setup May 1………….it looked like a beautiful inverse H&S pattern……..the breakout was in the 7.75/8 area and support was at 6………I was long just above 6 with a stop at 6, I was stopped out on this trade.  RENN got spanked friday on heavy volume.   You can see from this chart  today why waiting for the breakout can save you frustration and chop, also why having stops is important.  You have to trade what is, not what you think.  I believed the setup was there, I entered early and was stopped out with a small loss.  What I did wrong was jump the gun, what I did right was honor my stops and not be stubborn about being “right”………the market doesn’t care what you think and it will crush you if you are not flexible in your thinking.

 Hope you have a great rest of your weekend,the sun’s shinning here in Montana and  I’m going to take my pony out for a spin around the cross-country course this afternoon.:)