Looking forward to this week in the market. Loaded up on Tech stocks late last week, so expecting a nice turnaround and some bullish movement in these stocks. Would be nice to see VUZI at $6 this week. I am LT but willing to take profits on pumps. But the three stocks I have on my watchlist this week are ZYXI, WKHS, and CHWY.
ZYXI – Ever since the offering this stock has become bearish. It has lost 54% of its gains. But this is common for this stock. It has had major crashes after peaking many time before, anywhere from 40-50%, before reversing and making a new high. If history proves to be true, now is about the time to lad up on this stock. I am heavy in ZYXI for the long run. I also have some 20$ options for February. We are also bouncing off the weekly 50 day EMA here. The relative strength index is also pointing to a reversal in trend. AH this had some nice bullish movement, the first seen in months. They just presented at LD Micro as well. After they presented we saw a huge bullish move. Their could be something we don’t know that the market will find out about soon. Get in before the hype.
WKHS – have had WKHS on my watchlist for awhile now, and now is looking like the time to strike. After the first initial run, we have seen this consolidate around the high for awhile. Nice green candle on Friday with a bounce off the 50-day EMA. Narrow Bollinger bands as well, which is a sign that a stock is about to make a big move. we see it tap the upper band and the bands are staring to widen. This is usually the sign of a bullish run. I could see this getting in the upper 20’s this week maybe even higher. This company has massive LT potential and investors know this. Unless some bad news comes out, I don’t see this being back in the teens anytime soon.
CHWY- After the big Tech drop last week, Chewy took a beating. But earnings are coming out this week. In anticipation of good earnings, we should see this have some nice bullish movement early in the week. I am not a genie, so I can’t tell you if earnings will be good or bad. The easiest plays seem to be pre earnings plays. Prices become over inflated and that’s why you will sometimes see companies release solid earnings and still drop.