Quick Summary:
Indexes break key 50 dma levels. We could get a retest of recent lows and the 200 dma. Looking for a few select shorts along with longs from strong sectors biotech and gold miners.
Video
http://youtu.be/jDHR9fRRKv0I highly recommend that you watch the video, rather than just read the notes. I talk about strategies, entries and exits more in depth in the video, yet short enough that they are only 5-10 minutes long.
Indexes and Game Plan
The market got hit hard today as SPY and QQQ break below the key 50 dma support level. Whenever we see a break, we key in on continuation or a remount. My bias is that we see a test of the 200 dma at some point. Notice that the character of the market has changed to start 2015, as strength gets sold with weak closes. Thus I will look to add a short position or two, either in individual stocks or the indexes via leveraged ETF. Any shorts will be added on strength, as long as the 50 dma is not remounted.
The game plan is look for a short or two, and key in on a few select long setups in the biotech/healthcare sector, along with gold miners.
Trades
Stopped out of BABA. Current positions CYBR, TGTX and UCO. UCO is near exit level as we continue to watch Crude Oil at $50.
Focus List
Focus list (see video for setup and entries): New additions mainly from the biotech/health sectors that held up well today: RLYP, ISIS, EW, FEYE. Also watching GPRO, LNKD, FB and gold miner ETF NGUT.Right now the one main short setup is NFLX along with sector inverse ETFs SDS, SQQQ and SPXU
Sector Watch
Two sectors were strong today, Biotech and Gold Miners. We are keying in on these sectors (see video). We talk about homebuilders in the video, but more for the future as it tests the 50dma.
Breakouts
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
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)
