Wrap Up; SFLY, OMTR, ADI, CELG

It was a wild ride on the street today. Stocks came down to the point where the Nazz was down almost 80 points. Then a nice W bottom formed later in the day and the losses that were built earlier were mostly erased. Treasuries continued to rally and yields came down once again. Looking at a chart of 10 year note yields, it really looks like this action could continue and we could see the 10 year yielding 4 percent in the next few months.

I have a couple stocks I've been watching as of late.


ADI's chart is a beautiful thing. I saw the large triangle as it was forming and pointed it out on this blog. As the triangle broke the short trade was on and it has worked wonderfully. Using the triangle as a tool for measurement, ADI should eventually find its way to 31. However, now that the stock has had several down days in a row and RSI is beginning to show oversold levels, I believe it is time to lock in some gains. A quick 8-9 percent is nothing to laugh at.


CELG is another stock I recommended shorting recently. I also recommended in the last few days to take some profits in this name. 68.50 would've done the trip as a cover point today. If you haven't covered, I would recommending covering at least half and waiting for a bit to put the position back on.


One of the new names I'm looking at is SFLY. SFLY has continually bounced off a level at or around its 50 sma in the past. I believe it will do so once again once it nears the 50 again. Right now, it is on its way to the entry point. I would look to enter this trade at about a 5 cent premium to its 50 sma. The stop out point should be a bit more flexible with this stock as it has a tendency to break and then climb. Therefore, I would think of a percentage you're comfortable losing and setting the stop using that method.


The last new stock I'm looking at is OMTR. OMTR has a pattern that is very similar to SFLY's. I would look to play OMTR exactly like SFLY. Buy right off the 50 sma, give with it to an extent, and look for it to come off that level and go higher.

That's all I got for now.

CM