NEW YORK (TheStreet) -- Good day traders!
According to the Stock Traders Almanac, June 6 is a bearish day, because the S&P 500 Index has fallen 60% or more of the time on this day during the last 21 years.
Today's top picks are Celldex Therapeutics (CLDX), Ocwen Financial (OCN) and Scorpio Tankers (STNG).
1. First, let's look at biopharmaceutical company Celldex, which had a bullish day on Thursday, trading up 12.6% to close at $15.15.
- Thursday's range: 13.58 - 15.93
- 52-week range: 10.76 - 38.84
- Thursday's volume: 5,692,314
- Three-month average volume: 2,752,370
Celldex has formed a rounded-bottom breakout, and yesterday, it closed over the 50-day simple moving average. Plus, there was double the average volume on the breakout with lots of buying pressure.
At $12, it found some strong resistance, and so watch for it to break above that level today. Oftentimes when a stock has a large day like Celldex had yesterday, there will be a pullback the following day. That would offer traders a better entry level.
I'd look for an entry anywhere above the 34-day exponential moving average at $14.60. I'd set my stop at about $12.91, which is below the lows of the last few days.
My first target would be the 200-day simple moving average at $23.10, which is over 52% to the upside. If this trade goes to the 200-day SMA during the next few weeks, that would mean huge gains. That is why I love the rounded-bottom breakout. I've learned to let the trade work, let it pull back and wait for confirmation to exit the trade. Stay long until you see a sell signal, or a close below the t-line.
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