Quick Summary:
SPY looks a lot like Aug/Sept as price continues to float before likely pullback. New focus list additions LMT, GWPH, MOS, POT. ACOR back on focus list. Still watching the key focus list stocks for pullback. Gold miners bounce.
Video
http://youtu.be/ko98qQGBixo (12 minutes)Note: I highly recommend that you watch the video if you can, rather than just read the notes. I talk about strategies more in depth in the video. I try to make them short and to the point with little non-essential information.
Indexes and Game Plan
Strong move for the indexes today. This is why we have not short these extreme overbought levels. Like August/September, it takes time for the correction and is almost impossible to time. Gold minors made a nice move off the bottoming formation. We will watch today's gap as a decent entry spot. We continue to watch USO for a good "catch a falling knife" entry.
The game plan continues to be trade conservatively and focus on individual equities for long positions.
Today's Trades
I continue to hold $BITA. $BITA hit the bottom of our target range today ($95-100). If it gaps up tomorrow into the $96-100 level, I will likely take full profits. Otherwise, my stop is above the $80 entry level at the bottom of the breakout bar (around $82).
Sector Watch
As discussed, NUGT (gold minors) bounced off the bottoming formation and we will look for entry around gap fill
USO needs to hit trend line at $25-27 for rubber band bounce entry
Breakouts
I am keeping a close eye on high tight flag setups TQNT, AMED, BWLD and TTWO (see video).
With earnings season coming to an end, we continue to watch the attractive earnings breakouts we collected. The good ones are forming ranges and some will become the next momentum players.
TTWO, CALD, COUP ACHC,RFMD,ACCO,AMED,X,TQNT,AN,TRNX,MSG,RCPT,VDSI,BCOR,CATM,BWLD
Focus List
New Additions: POT, MOS, LMT, GWPH (see video for entry strategy)
GWPH is a breakout remount setup
POT and MOS broke out with Ag sector. POT remounted 200 dma while MOS is under
LMT has pulled back to old high and has entry in $184-185 with tight stop and target around $190.
The overall focus list: SOHU,SPLK,WUBA,MEG,BABA,CALD,CYBR,BITA,TSLA,GNC,BIDU,LULU,WLL,GPRO,MNST,NILE,PTX
Stocks keying in to start the week still are at the forefront of the list:
BABA, CYBR, TSLA, NILE, PTX, GPRO, WLL, WUBA, SOHU
Watch video for BABA analysis around gaps ($110, $105, 100).
The above stocks require a bit of pullback and ACOR added to the list near entry level.
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.
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