Quick Summary:
Indexes in between 20dma and 50dma on volatile action. Wait and see mode. Talk about big momos that have rolled over. Small focus list: ATRA, SIG, GWB, GS, VA, ZEN. Where to play bounce in energy.
Video
http://youtu.be/i83WdFuxCBQNote: 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
More mid-December volatility. The indexes are in no mans land, caught between the 20 and 50 day moving averages with volatile action. Until we get a pullback to the 50 dma, or remount of 20 dma, it's tough to get aggressive. The game plan is to stay patient, manage positions and be very selective with entries. We are also starting to watch rollovers in big momentum plays that have broke down like BIDU, NFLX, GOOGL, YY, YELP and TSLA. These could be short setups on bounces.
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, CYBR and VEEV. Stops for all are below the 50 dma.
Sector Watch
No sector is currently immune to current volatility. We are watching energy for one more leg down before taking a stab at the oversold "rubber band" snapback setup.
RETL,USO,XLE,EDC,IBB,INDL,BRZU, XLF, NUGT .
Breakouts
All of our earnings breakouts remain technically sound.
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
We are very selective here with a handful of possible setups. I still feel the best bet is to hold off on swings, but if you must trade, this is a good list (see video for entry)ATRA, SIG, GWB, GS, VA, ZENWe are also starting to watch the momo stocks that have rolled over for shorts on bounce. This could take place next week. Here is a list to start with:NFLX, BIDU, BITA, YELP, YY, GWPH, TSLA.I posted about TSLA earlier today.
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)
