Quick Summary:
Indexes continue to trade in range at highs and are overbought. Gameplan is to watch for good long setups from the focus list and China stocks, along with new focus list entries FOSL, LULU, GPRO and GMCR..
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Video
Indexes amd Game Plan
SPY opened with a gap down today, but as usual the gap filled before closing down slightly. We are still trading within the range that has formed between $200-205. We continue to wait for some clue to get long or short SPY and for now only focus on individual stocks.
For QQQ we continue to watch and see if the old high fails.
The game plan remains to monitor but not yet trade the indexes, and focus on the strongest individual stocks for long entries. Most of our momentum stocks need a bit of a pullback. I am using a very selective strategy, and will not look to push any trades. I am perfectly fine in cash right now, though I am willing to put some money to work if a few China stocks pullback.
Today's Trades
YY gapped down on the open but recovered and closed just under the 50 dma. Intra-day it had remounted, but we only count remounts at the close. I found it interesting that IBD is calling this a cup and handle with a buy point at $86. Stop is under today's low in the $76-76.80 range. This unpredicatable trading range (up after hours vs gap down today) is why we went small (1/4 position) pre-earnings.
BITA was a half size position (remount setup) and is still holding the 50 dma. Earnings are on Friday. What we want is a move up to $83-85 to give us some breathing room going into earnings. If we don't get that, I'll probably exit early.
Breakouts
FOSL added to breakout list. I may enter on weakness tomorrow. Strong breakout on high volume combines earnings gap breakout and remount of moving average setups (see Education Archive in Forums)
TTWO, CALD, COUP ACHC,RFMD,ACCO,AMED,X,TQNT,AN,TRNX,MSG,RCPT,VDSI,BCOR,CATM,BWLD
Focus List
China and interent/software stocks are the best momentum plays this week. Most China stocks remounted moving averages or bounced off them today. A pullback tomorrow provides good entry in these stocks.
GPRO still a concern with the releasing of shares, however it offers great reward to risk. GMCR is reaching entry level around $150.
LULU is back on the focus list as it remounts moving average and completes bottoming formation.
GPRO,GMCR,NILE,GNC,MEG,BITA,LOCO,BABA,PANW,MNST,SPLK.
We continue to monitor oil/gas, but no entry at the moment:
HP,RRC,NFX,AR,CSIQ,FSLR,EXXI,LPI
Please read the Education Archive and posts 23 Laws of the Part Time Swing Trading the Market Speculator Way and How to Analyze Your Swing Trade Results It is important to know these setups and rules if you trade off the Report.
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