17 Sep, 2018

Trade Plan of the Week 9/17/2018

Last week was a fairly choppy market and futures are down slightly right now as I type. I think that the market still has room to move up but I’m going to trade cautiously this week. I was initially planning to avoid a biotech stocks this week because I wanted to see a more convincing move up from the IBB (Biotech ETF). I decided otherwise because it is sitting just above a strong support level and recent low of ~$116.36. This provides a trade with lower downside risk.

See the market futures here: https://www.cnbc.com/pre-markets

I check these on Monday morning to make sure that I am aligned with the market. If the market looks very red, I won’t buy because that is swimming upstream.

The trade of the week for this week is ATRA (Atara Biotherapeutics Inc). Based on market futures and the recent intraday moves in this stock, I’m expecting to be able to buy somewhere around $40.90 (maybe $41.00) in Monday’s market. I like this chart because there isn’t any significant resistance until above $45. It is possible that this one won’t get moving for us but I think the risk of a large drop is low.

Note that the RSI is below 70 (not overbought), which is desirable. Also note that the SMA(20) will make a nice stop on this one. If it closes below that, it’s probably a good time to sell.

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