Quick Summary:
SPY overbought and near new high resistance. Watch how handles this level. QQQ high breakout. Continue to monitor focus list stocks, keying in on BIDU, GPRO, ACCO, BITA, YY, X, MBLY and the oil/gas/solar stocks showing bottoming formations.
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Find how to join the swing forum here If you have any issues please email kevin Sword at kevin@bullson.wsKey SPY Pivot Levels:
Under the Hood and Trading Game Plan:
SPY gapped right up to new highs Friday, and held the price bar. While this is strong price action, the market is extremely overbought. Does this mean we get ready to short? NO. We need to watch how things play out. I am not playing the indexes and will focus on individual equites until we either get a pullback or a breakout to new highs that holds.
This week keep a watch for two things:
1) a pullback that fills gaps that were created during the "V" bounce last week. Those are levels we could possibly get long.
2) a breakout to new highs, followed by a breakout failure. This is where we would get short. If you have not already, review the breakout failure setup.
$QQQ broke out to new highs. I will watch this for the breakout failure setup, which looks like a strong possibility with that RSI divergence showing up. I will not get short unless $QQQ closes below the hold high.
The current game plan is to monitor the indexes for breakout failures. Until then, I will look for longs in individual equites. Oil stocks seem to be bottoming showing strong underlying volume patterns.
Current Trades
I entered $GPRO on Friday and am holding ACCO. Both are earnings breakout long setups, and are still good entries. Consider them part of the focus list.
The Trade Journal
The Focus List
Todays weekend sector analysis put oil/gas and solar stocks at the forefront. While the sector has been beaten down, we have seen a bottoming formation play out with very nice volume patterns. There are a ton of stocks to choose from. I keyed in on low floats that have not yet broke out but show nice volume within the range.
I want you to click on these Finviz charts and pay attention to the volume patterns: HP,RRC,NFX,AR,CSIQ,FSLR,EXXI,LPI. I have not yet formulated prices entry levels on these and will assess throughout the week. I will look for slight pullbacks for entry.
Here is the 16 stock watch list to start the week: SPLK,MNST,NILE,MEG,X,GPRO,GMCR,BABA,MBLY,PANW,BITA,GNC,LULU,LOCO,BIDU,YY
Stocks I am keying in on for entries:
BITA broke out of a triange formation and remounted the 50 dma (review remount setup). I will look for a pullback anywhere from $79.50-82.50. Stop under the 50 dma with a target at recent highs around $92-95.
BIDU is a good example of how hard it is to game earnings. After hours it was down on the earnings announcement, then opinions change and it breaks out on Thursday. I don't care about what's in the report, only the reaction. I'll look for a pullback close to the $230-232 breakout range. The week close suggests a pullback.
YY remounted the 50 dma and has a nice volume pattern.
X broke out on earnings and remounted the moving average. The ma is holding. Entry in the $39-39.75 range. Stop under the ma. Target $42-45.
Recent IPO $MBLY is basing just above it's newly formed 50dma. I like this as an "anticipatory breakout" play. Entry on slight weakness above the 50dma.
I continue to monitor our earnings breakouts:
RFMD,ACCO,AMED,X,TQNT,AN,TRNX,MSG,RCPT,VDSI,BCOR,CATM,BWLD, TTWO, ACHC
Please read the post 23 Laws of the Part Time Swing Trading the Market Speculator Way and How to Anayze Your Swing Trade Results It is important to know these rules if you trade off the Report.
New subscribers and trial members please leave me any feedback/comments in the comments, via email (singhjd1@aol.com) or twitter (twitter.com/PaulJSingh). dddd
