Quick Summary:
Indexes make gains though momentum stocks are getting hit. Continue to monitor trading range. Two new breakout stocks: CALD, COUP. Biotech pulling back before market.
Admin Notes:
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Video Analysis:
Today's Report is in video format with a written summary below (9 minutes).
Video Notes:
The overall game plan is the same Monday's report: monitor the indexes for breakout failures. Until then, I will look for longs in individual equites--focus list stocks and earnings breakouts.
Two key adjustments: Be more cautious with individual longs as momentum stocks are diverging with the market, and now watch for a pullback more closely.
Indexes
SPY and QQQ gapped up today, with QQQ filling the gap and SPY's remaining open. Both closed in plus territory at highs. However, momentum stocks did not keep pace. In the video look at all the red in my focus list to the right of the screen. That is not what you would expect when the market is closing at highs. This is reminiscent of the highs in September before we got the pullback. Now one day does not make a market trend, so we will continue to monitor.
If we look at price action alone, we still see consolidation at the highs without any support violations.
The game plan for SPY continue to monitor any pullbacks to gap fill or moving average supports for long entry.
We stalk the QQQ breakout to see if it fails and we get the "breakout failure divergence" setup.
Also keep monitoring IBB. Biotech has been leading the market but is now pulling back before the market. This could provide a clue for the overall markets.
Today's Trades
No trades today.
Breakouts
Two new breakout stocks added to our list:CALD and COUP. Both are high volume breakouts after long consolidation ranges.
TTWO,ACHC,RFMD,ACCO,AMED,X,TQNT,AN,TRNX,MSG,RCPT,VDSI,BCOR,CATM,BWLD
Focus List
There were a number of support violations in the focus list and 6/30 were in the red. I will monitor, but not high on any entries.
SPLK,MNST,NILE,MEG,X,GPRO,GMCR,BABA,MBLY,PANW,BITA,GNC,LULU,LOCO,BIDU,YY
We are monitoring the gas/oil/solar and a few are near entry level (NFX, HP)
HP,RRC,NFX,AR,CSIQ,FSLR,EXXI,LPI
Please read the post 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 rules if you trade off the Report.
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