Quick Summary:
SPY violates remount by closing under the 50 dma. Took position in SPXU (inverse SPY short). Video link to TickerTV discussion with Kunal. Our 4 sectors outperform the market today.
Video
http://youtu.be/2hBuOoKiEG0I 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. *****This morning Kunal and I got together on the BoW TickerTV channel with some great trading strategy. My audio was not working early on, so skip to the 13 minute mark:http://ticker.tv/kunal00/54b40fb1c9f9090e6500000e
Indexes and Game Plan
SPY closd below the 50 dma today, violating the moving average remount and setting up a test of the 200 dma. Based on this analysis I shorted SPY by going long inverse ETF SPXU. I do not expect we will get a straight move down to the 200 dma. Expect some volatility in the coming days.
The game plan is to manage the current short position and look for longs if the market starts to pullback. Patience is key here. I am waiting for deeper pullbacks.
Trades
I am still holding FB, which is 20 cents above entry level. If the market pulls back it will likely break below it's moving average support.
I entered SPXU as discussed above and in the video. Stops are set according with SPY. If you need to set a hard stop, a good spot would be in the upper $37 range.
Focus List
Focus list (see video for setup and entries): OC,CEMP,RGLS,AMBA,HELE,RH,MUSA,PIR,DHI,HD,LEN,MNST,NUGT,BWLD,TGTX,BLUE,VA,YELP,ULTA,LOW,KITE,AGIO
Sector Watch
All four of our sectors outperformed the market. Biotech and Homebuilders closed in the green, while retail was down only slightly. Gold miners were on fire (see video).
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)
