Video: https://youtu.be/QIYDgZl9mLsMentorship Session Recording (October Meltdown): https://blog.bullsonwallstreet.com/swingmentorshipLast week was constructive even though the week did not end on a strong note. SPY remounted and held the 200 day moving average, which is the second resistance level it has taken out since bouncing off lows. Remember, as the market takes out resistance levels we go from bearish to market neutral to potentially bullish if the market can take out the 50ma. However, if the market fails to hold current levels, we go back to bearish and will look to short the indexes by going long inverse ETFs like SQQQ, TZA and SOXS (see video).We are still building lists of relative strength stocks, along with trading earnings breakouts for potential longs.I was stopped out of NFLX and ULTA on Friday and am still holding PAYC.Overall earnings season has been bad, although it did show improvement last week. That is a potential driver of the current market. I continue to mentor earnings reactions. Also, now that all FAANG stocks have reported with poor reactions, I am watching for signs that they reverse.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. Today we might have the first clearance, but for now we still look at this as a temporary oversold bounce and not a trend shift.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 don't know yet if this is a true reversal of trend bounce or dead cat failure bounce.Relative strength list: MOS, DRI, ORLY, SFLY, ISRG, ILMN, AMZN, TWLO, CROX, ETSY, UA, ULTAPotential bearish plays: SQQQ, TZA, SPXU, SOXS, FAZ, NVDA, FBCurrent Positions: Stopped out NFLX and LULU. Still holding PAYC.Today'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)
