Small caps stocks bolted higher on Thursday, finishing the day with a solid 1.93% gain.
Institutions stepped up their activity on Thursday, propelling price action back above the 50sma. Volume by price (VBP) resistance tapers dramatically above the 139 zone. The upper trend line is our next target, provided the bullish move that we saw on Thursday continues over the short-term.
RSI, STO and MACD all suggest we could achieve this goal, sooner rather than later.
Century Link News – Potential Trade
In other news, CTL shares closed up 5.98% on Thursday yesterday after announcing Jeff Storey, the current CEO of Level 3 Communications, would take over the helm in 2019. Storey is expected to take on the role on January 1st, 2019. While that is a ways off, there is a near 20% short position in the stock.
We are watching stocks in this group, as well as CTL for day trade opportunities.
The “fixed-telecommunications” industry group has seen a lot of activity recently. Click the link for charts of ATT (T) Verizon (VZ) and CHT – the standouts. That said, more homework is needed. Consider this a heads up to watch CTL for now.
Watch List Performance for the Week
We will continue adding to existing positions using the TD setup. The newest addition yesterday was LITE. We took some PYPL profits off the table with the intention of adding shares once the stock flags or pulls back to the 9ema. The stock might also continue on its wayward path, though we felt it made sense to ring the register into strength.
It’s Fry-Day, so we will be trading lighter today. Scalps will be short and sweet, with activity usually slowing down after the noon hour.
Happy Trading,
Vinny
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