Monday is here and as we enter into the first full week of trading for the month of June, it’s 6-6-6 day: June (6) 6, 2016. Donald Trump has already clinched the delegates needed for the Republican nomination, Hillary Clinton clinched after winning Puerto Rico yesterday, and Janet Yellen is due to speak this afternoon at 12:30PM EST. Conspiracies abound, today is also the beginning of Ramadan.
Stocks Likely To Be Shorted Today
- EBIO ($78.97M traded last 2 sessions)
- LBIO ($77.65M traded Friday)
- CBYL ($10.47M traded last 2 sessions)
- PGNPQ ($4.08M traded last 3 sessions)
GBHL 0.0012 – Subbie traders may enjoy have a close look at the owners of www.weedweb.com. Shares of GBHL have been dead asleep for nearly a year despite some news announcements back in November, but last week, two sessions (Tuesday and Friday) had enough volume flow, and recorded the 52 Wk Lo: .001, to warrant a patient look. The SS is confirmed via Nevada SOS that there are just 230M shares authorized, 10% of which traded on Friday, but the near donut in the volume column Thursday ($90 worth) does raise some concerns on whether it really could be a good trade.
ALYI 0.003 – Very very low volume, a respectably small SS (500M Authorized | 115,724,295 Outstanding as of May 16, 2016), the attractiveness of this SEC filing subpenny is their 52Wk Lo close on Friday. There is an enormous amount of debt on the books ($2.9M) to be countered by their $18,689 revenues from the 3 months ended March 31, but they did make an attempt in February to say the shares had a price target of .05 near term – .17 long term. Maybe worth a $100-200 bid on the 52Wk Lo with a plan to sit in it for 2-3 months for some kind of buzz to build up.
ADTM 0.0054 – It bounced!
After more than a week of relentless selling and bagholding every buyer who was trying to catch the falling knife, ADTM shares actually bounced on Friday. Nevada SOS confirms that there are 300M shares authorized, but with the way ADTM has played over the past week plus, bidding the 52 Wk Lo .004 for a small starter would be the only way I would approach this if I was desperate for a trade.
AZUR 0.77 – Azure Midstream Partners, LP, a midstream natural gas gathering and processing company, voluntarily delisted from the NYSE and shall commence trading on the OTC today. They just reported their Q1 2016 earnings which showed revenues of $12.68M, net loss of $109.03M whereby gross margins narrowed from 27.87% to 26.50% compared to the same period last year.
What is quite intriguing is how AZUR had 19.79M shares outstanding, 4.40M which made up the float. Shares have been on a decline from $4 since the end of 2015 so this voluntary delisting could settle below the 52 Wk Lo of .62 and play for a typical OTC short squeeze in the coming days and on strong oil news.
She (Janet Yellen) speaks today at 12:30PM EST and, after that abysmal jobs report on Friday which sent S&P Futures spiralling down to bounce off the 2083 support line (SPY 209), we can expect to hear blah blah bluh bluh. As head of the Fed, she has said how gradually increasing interest rates this year are coming, delayed, coming, delayed due to CPI (inflation) coming in higher than expected last month, but a Brexit threat looming come June 23.
We put in a new high of the year just after the close on Thursday, breaking past 211 for a brief moment, and the market clearly has factored in “no rate hikes” until at least December. The reaction to the terrible unemployment numbers on Friday proved the market is in an ether as it bought the dip up almost all the way back to 211.
So, with SPY and the contracts of SPY being what they are, and factoring in that it will take a massive bomb drop from an outside source or from Yellen herself to get SPY to break below 209 and retest those lower support levels at 208.50 and 207.30, beware of the bull. Because of that and with how we watched and played it last week, take a closer look at VXX 14 CALLS:
VXX hit an ALL TIME low on Friday, 12.94, and is the mirror opposite of SPY. SPY pops, VXX drops, SPY drops, VXX pops. With that in mind, the closer we get to 211 or higher before Yellen speaks, the easier it is to look for a CALL play on VXX for the weeklies since a drop will pop it. Additionally, the price per contract on VXX is considerably less in comparison to SPY which allows for more to be bought, thus lowering the break even number needed for a green exit.
VRX is another one that will be watched closely as to how it plays on Monday ahead of their earnings which are due to come out Tuesday pre market. Looking at this 30 Day/1 Hour chart, you assume this channel from 31 – 27 with the support line at around 26.30 is a wide enough range for which a play may arise after earnings.
When you pull up the 1 year chart and see how shares traded up in the 230+ range until the accounting issues were raised and earnings forecasts were cut in half, this former 2900% Friday play could be a treat come Tuesday morning. Because they are due to report earnings Tuesday AM, contracts in either direction will be overpriced and not worth even strangling.
Others that will be tracked and stalked for entries on plays will include:
BAC, NFLX, BABA, AGN, IWM, GLD, NUGT