Quick Summary:
SPY continues below the 50 dma after trying to remount at the open. Took profits in FB and still holding SPXU (SPY short). Gold miners could be starting pullback. XLE near bottoming formation.
Video
http://youtu.be/a3G3Cogfy1wI 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. *****Monday 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
Volatile day today as SPY tried to remount the 50 dma and eventually pulled back hard from the highs. A few of you got scared and exited before the appropriate stop level. If the initial stop is going to make you feel pain during the ups and downs of the intra-day price action, your position size is likely too big and you need to take a smaller position. Either that or you need to set your stop and walk away from the screen.For now the pullback thesis is still in play. During this time, I will look to either add to the short position and watch focus list stocks as the market pulls back for good entries.Intra-day SPY chart with stop placed above recent high.
Trades
Took profits in FB today near the 20 dma before it pulled back.
Still holding SPXU. Notice the positive volume and price action in the inverse ETF. Gives us a different perspective in analyzing SPY.
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
Building materials stocks held up well today, as did biotech. Gold miners got hit hard and formed a bearish engulfing candle at a recent pivot high. Hopefully this starts a pullback and gives us a better spot to enter.
XLE is nearing the bottom formation entry we talked about yesterday.
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)
