Video: https://youtu.be/QvT3i6kjfxs*NEW* Mentorship Session Recording (October Meltdown): https://blog.bullsonwallstreet.com/swingmentorshipYet another bull trap as the market opened strong can closed in the red again today. However, it is interesting that while the market was read, we did see some late day buying in the final minutes of the trading day (see video for intraday chart and analysis). We will monitor this and could use follow through for a "quickie" bounce trade. But remember, unless upside resistances get taken out, we remain bearish. That does not mean we can't take bounce trades, but we expect failures or "dead cat bounces" until proven otherwise. First major resistance level to monitor is the 9ema.I took profits in BABA short and SPXS. I am still holding SQQQ. Stop is $14.60 (profit taking stop).Retail has shown relative strength and make up most of my relative strength list. It was again strong today, actually closing green.Remember strong bounces are common in corrective markets. They only signal a potential shift in trend if they take out key resistance levels coupled with strong market breadth signals. Yesterday's green day did not qualify.Earnings reactions continue to act poorly, another bad signal for the current market. AAPL reports on Wednesday which will be a big market tell.The game plan now is to:
- Let shorts play out.
- Look for potential bounce plays
- Continue to montor relative strength.
- Monitor S/R levels on indexes and stocks. The 9ema is key right now.
- Monitor earnings reactions
*While I am bearish and expect more downside, the market can change on a dime. We really don't know what's going to happen. Also keep in mind that within corrective markets we often see powerful bounces. Trade small, don't get too aggressive and stay in protection mode.We will watch support today and keep an eye on intraday reversals. If that happens, there's a chance we take a long bounce play in index ETFs or beaten down stock like NVDA or SQ.Potential Bounce List: TNA, TQQQ, NVDA, SFLY, ROKU, FANG stocks.Relative strength list: MCD, ULTA, ORLY, LULU, SBUX, BURL, WMT. KSS, CROX, TJX, TEAM, BKE, TWTR, CYBR, PAYCCurrent Positions: Took profits in BABA short and SPXS. Still holding SQQQToday's video:
Please read the Education Archive and posts 23 Laws of the Part Time Swing Trading the Market Speculator Wayhttps://blog.bullsonwallstreet.com/23-laws-part-time-swing-trading-market-speculator-way/How To Use Swing Dashboard: https://blog.bullsonwallstreet.com/how-to-use-the-new-swing-trader-dashboard/Chat With Traders Interview: http://chatwithtraders.com/ep-058-paul-singh/29 Essential Trading Posts: https://blog.bullsonwallstreet.com/29-essential-swing-trading-posts-2016/New subscribers and trial members please leave me any feedback/comments in the comments, via email (singhjd1@aol.com) or twitter(www.twitter.com/PaulJSingh)
