SLW, NSTK, CELG

The broad market has been drifting downward as of late. Action has been volatile although it is rather quiet today (we'll see later in the day about that), allowing some huge intraday ranges to appear on charts. I've seen plenty of patterns where the bar for the day spans from one bollinger to the next. This type of action offers good day trading opportunities. However, looking at the market from a bit more of a position trader perspective there are a few names that have been holding up nicely during this dip and should be bought soon.


The first of which is SLW (Silver Wheaton). Looking back on a 2 year day chart you can see how the stock had struggled many times to break out from 12 bucks. Well in June and July the stock successfully made the break, moving up as high as 15 dollars. The stock has pulled back recently and is in consolidation mode. I am looking for this stock to come back to do a test or a near retest of the breakout point. That means I'd be buying around 12.25 looking for a strong bounce around the 12-12.25 level. If the stock gets below say around 11.95 depending on your level of tolerance and stop placement, I'd stop out. I think this stock presents a good trade here with limited risk and good clarity.


The second stock is Cramer Favorite NSTK. Looking at the chart, you can see that after consolidating below the 200 sma, the stock finally broke sharply through and above the moving average. Now, however it is coming back down. I think a smart play would be to watch for a retest of the 200 sma and buy this name. A move below the 200 sma proves this stock thinks otherwise and the trade is busted.


Lastly, I just wanted to reiterate that CELG, one of the picks on this blog, has been holding up nicely throughout this decline. It bounced, as I predicted, off of its 200 sma and ran up a little. It would've been prudent to sell a little after its first four days of straight up in the face of the market decline. Now, it is coming in a little, although it still is looking relatively strong when compared to the broad market. It's currently hanging above its 50 sma still higher than where we recommended it recently. Right here I would start to look to buy once again. The market is selling off once again today and you just have to think that a nice bounce will be around soon.