Quick Summary:
SPY and QQQ continue to trade within the developed range near highs and overbought levels. China and software stocks have moved to the top of our focus list and almost exclusively makes up what I am looking to trade tomorrow.
Admin Notes:
I have added an "Education Archive" in the Forum. This is not for commentary but is acting as the educational content portion of the Swing Trade page and should be used as a "how to" supplement to the Report. I will be adding content frequently. Next up will be a post on position sizing.
https://blog.bullsonwallstreet.com/forum/#/education-archive/
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Indexes
Our analysis of the indexes is exactly the same as it has been the past few days. We watch the indexes to give us a clue.
SPY floats higher but still within a range, with a 5 major gaps waiting to be filled. If we do get a pullback this week, the first key test will be the gap fill right around round number $200. If that doesn't hold, expect a test of the moving average at $196, which also matches up with another gap.
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. 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
No trades today.
Breakouts
No new additions or current entries.
TTWO, CALD, COUP ACHC,RFMD,ACCO,AMED,X,TQNT,AN,TRNX,MSG,RCPT,VDSI,BCOR,CATM,BWLD
Focus List
New additions:
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. Note: DANG and YY are still on our list but have earnings tomorrow.
BITA remounted the 50 dma. I'd like to see a pullback in the $80-81 range. Stop under the ma and target above $90.
CYBR bounced off the newly formed 20 dma pointed to last night. Now that we have confirmation we will look for a pullback entry.
LEJU is basing above the 5o dma and has a nice volume pattern. The big down move 4 days ago is a concern, but the fact that it was on decreased volume from the breakout keeps it on the focus list. Entry $14-14.50. Stop $13.50.
SOHU broke above the 50 dma. Again we look for an intra-day pullback for entry off this bottoming formation.
WUBA is forming a bottoming formation and has remounted both moving averages. It now has formed a nice base above the moving average with entry level in the $38.50-39 range.
The rest of the focus list:
GPRO,GMCR,NILE,GNC,MEG,BITA,LOCO,BABA,PANW,MNST,SPLK
For the start of the week, GPRO, GMCR and NILE are near good entry levels.
After today's news that GPRO is issuing more shares, I am not looking to trade it.
We continue to monitor oil/gas, but no entry at the moment:
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.
New subscribers and trial members please leave me any feedback/comments in the comments, via email (singhjd1@aol.com) or twitter (twitter.com/PaulJSingh).
