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 - Get Report), Ocwen Financial (OCN - Get Report) 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.