Quick Summary:
Indexes continue down move toward 200 dma, reversing the late day hammers that were forming in the final minutes of the trading session. This is a true change in character for the market. Wait for confirmation moves. Today's entry FB.
Video
http://youtu.be/1BRyuewjaG8I 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 continued the down move to the 200 dma. There was a fakeout at the end of the day as tails were forming that held until just a few minutes before the close. The fact that these bullish tails did not hold is a clear sign that there is a CHANGE IN CHARACTER. Last year we rarely saw these types of poor closes with late day reversals being sold. For now we watch for a reversal confirmation or a move to the 200 dma. Until then it is best to take it easy and watch. If you daytrade along with your swings there are plenty of trades, but swing traders need to be patient.Chart of SPY's intraday selloff in the last few minutes:
The game plan is to wait for clues. Tomorrow the December Fed minutes are released. Let's watch the close to see how the markets react.
Trades
Stopped out of UCO and CYBR. Entered FB. Still holding TGTX.
Focus List
Focus list (see video for setup and entries): Right now GPRO and pullbacks in gold miners are the only setups focusing on. Still watching yesterday's list (see Report).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 but need to bounce a bit for entry.
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)
