A LOT OF TRADES ON THE BRINK-SQNM

Here' a bio that looks set for a breakout. Actually there are a lot of stocks sitting right at breakout levels, including silver and oil.

If my theory pans out, then a lot of these will breakout with a market breakout next week, probably early next week. However, I view many of these including SQNM as most likely being short term trades. It depends first if we do get the market head fake and second on how long a head fake lingers above the resistance (breakout level). If you are more of an active trader and have the ability to watch the market and make quick changes and you have good risk management, then these may be appealing quick trades.

If you are more interested in playing the bigger picture and don't have time to follow these trades during the day, you may want to just sit tight and go for the bigger opportunity.

Here's what SQNM looks like...

 A nice bull flag type pattern, consolidating along the lines as the same timeframe as the market in general. What I do like about this trade from a risk perspective is that it is close to support, and while I would allow a little room below support, all in all, the risk profile ism't bad looking and this stock can move.

 Here's recent improvement in the 15 min chart inside the flag.

 And the 10 min chart with a divergence near the lows of the day.

The 5 min chart with a positive divergence at the lows of the day.

However as I mentioned, the chances of a breakout here are dramatically increased if the theory that the SPY $135 calls are being pinned and we'll see a head fake breakout next week as op-ex is today.

That also means if that breakout, as I suspect is a head fake, most equities will fall when the market does, so you have to be on your toes.

Otherwise, I would probably sit back and wait for this bigger picture and the bigger trade to play out.