Quick Summary:
Index recovered Monday's gap down. Strong sectors include medical/health, semis, financials, biotech. New adds to focus list VTAE, ALLE, OCR, PAHC, JMP, GS and Zen. Current positions Z, VEEV and new entry CYBR.
Video
http://youtu.be/vxWChKndQT8Note: I highly recommend that you watch the video if you can, rather than just read the notes. I talk about strategies, entries and exits 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
While indexes recovered with bounces after the Monday gap down, keep in mind that the same thing happened in July and August/September before deeper corrections hit. SPY has fully received and is at new highs. IWM has remounted the moving average but is not at highs. QQQ is lagging, not having recovered Monday's move yet. Keep December seasonality in mind. The indexes tend to be a mix bag during the middle of the month before ending strong.
The game plan is to continue to watch the indexes for clues, and focus on individual equites with strong price and volume patterns. We are focusing on momentum plays that have been strong, IPOs and stocks from strong sectors.
Today's Trades
I continue to hold Z and VEEV.. The stop for Z is in the $109-110 range. VEEV is in the $28.50-29.50 range.
On Friday I entered focus list IPO CYBR. It is a combination of a breakout pullback and trend pullback to the 20dma. Price slightly violated the ma before closing above. That is when we entered. Depending on your risk, stop can be under the breakout bar around $38 or the 20dma around $39-39.50.
Sector Watch
In the video we talk about doing regular sector analysis on weekends. Strong sectors we are keying on are Healthcare/medical, Semis, Biotech, financials and software. Some new stocks from these sectors were added to the focus list. Note that I am not playing any sector ETFs in these categories, only looking for strong stocks.
I am still watching last week's sector ETFs, though none are worth entry now.
RETL,USO,XLE,EDC,IBB,INDL,BRZU, XLF, NUGT .
Breakouts
TQNT, ACCO, AMED, AHCH, BWLD, FOSL, TTWO are favorites right now and are consolidating near moving averages.
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
The focus list to start the week (see video)
BIDU,Z,VTAE,SIG,VA,HABT,ALLE,DFIG,VEEV,GS,OCR,PAHC,JMP,ZEN (see video for entry tactics)
VTAE, ALLE, VA, OCR, PAHC, JMP, GS and Zen are new to the watch list from strong sectors.
focus list biotech: ATRA, ESPR, SGMO, MDVN, AGIO, ACHN, RGLS
focus list retail: NILE,TIF,SIG,OUTR,HABT,GES,MUSA,ARO,ULTA
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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