Quick Summary:
Pullbacks today, with SPY and QQQ testing 20 dma. Not good under the hood. Keep seasonality in mind. NUGT in play.
Video
http://youtu.be/fSgM4ULpURwNote: 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
Pullbacks across the board, with the exception of a few select IPOs and sectors. While the moves in the indexes themselves are minor, with SPY and QQQ losing around .7 percent and IWM at -1.25 percent, it's the fact that momo stocks and other popular stocks were hit hard and many seem to be rolling over.
Remember we talked about seasonality this weekend. December tends to be choppy and we often get pullback before the late December run up. Thus, the game plan now is to play it safe and look for a good time to enter to take advantage of a late December move. We are also keeping an eye on shorts in sectors that seem to be running out of steam and popular stocks that look to be rolling over. I am working on that list but won't add a short focus list until we get clear signals.Thus the plan for now is to stand back and watch. If looking for a trade, gravitate toward gold miners.
Today's Trades
I am still holding VEEV, CYBR and Z. CYBR's stop is just under today's low.
Sector Watch
While biotech closed green, an inverted tail formed as price closed off the highs. Semis printed a "bearish engulfing" candle. Retail continues to show weakness after the run up. These are negative signs, and often the hot sectors fall the fastest. Thus, I will be watching for possible shorts, but not quite yet. One day is not enough to reverse course.
Other sectors we have been watching continue to show weakness, except gold minors. If looking for a trade, look to gold and gold miners.
RETL,USO,XLE,EDC,IBB,INDL,BRZU, XLF, NUGT .
Breakouts
The breakout list pulled back across the board, but no real technical violations yet. If we get a market pullback, we'll get some good entries later.
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
For tomorrow not looking to trade off the focus list.
BIDU,Z,VTAE,SIG,VA,HABT,ALLE,DFIG,VEEV,GS,OCR,PAHC,JMP,ZEN
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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