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. Yesterday's entries YY and BITA. The after hours reaction to YY earnings was positive.
Admin Notes:
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https://blog.bullsonwallstreet.com/forum/#/education-archive/
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Video
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. 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
Yesterday I entered China stocks YY and BITA. Intra-day alerts were sent. We talked about the hot China sector on Monday.
YY was a quarter size position using extreme caution due to earnings (remount setup). The after hours reactions to earnings was positive with the stock hitting $83. WE will see if it carries over today. My stop is under the 50 dma around $77.
BITA was a half size position (remount setup). Earnings are on Friday. My strategy here is to get a bit of a bounce pre-earnings to give a cushion against a bad earnings reaction. If I don't have that cushion, I will exit pre-earnings. Stop is around $78.
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
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.
The rest of the focus list looks lgood but requites pullback:
GPRO,GMCR,NILE,GNC,MEG,BITA,LOCO,BABA,PANW,MNST,SPLK
GPRO and LOCO are on the list but not trading right now due to breakdown of 50 dma. Watch for remount.
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.
New subscribers and trial members please leave me any feedback/comments in the comments, via email (singhjd1@aol.com) or twitter (twitter.com/PaulJSingh).
