Quick Summary:
SPY continues pullback. Still holding SPY short (SPXU) and entered strong biotech pullback stock RGLS. Focus list narrowed for tomorrow BLUE,UCO,NUGT,VA,BWLD,MNST,HD,LEN,LOW,DHI.
Video
http://youtu.be/INixoyVvVSgI 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
SPY continued the move toward the 200 dma just as we had hoped, though it recovered some toward the end of the day. In the video I discuss my internal conflict with taking profits here or waiting for the 200 dma. Either choice is fine, but what you can not do is panic on a bounce and take a small profit. Either take it here where you get 2:1, at the 200 dma or stock with your stop. Remember, small losses are fine, small profits are not. Exit today follows the "adapt" strategy I talked about today in the blogpost.The game plan is to manage positions and patiently wait for good risk reward setups in the select few focus list stocks discussed. There are not a lot of classic/perfect setups, but there are some good risk reward plays if we bounce.
Trades
I am still holding my entire SPY short (SPXU long).
I entered RGLS, which is a classic breakout pullback setup. I was willing to take it because it is from the strong biotech sector. See the video and the education archive for more on this setup.
Focus List
Narrow Focus List for Thursday (see video):
BLUE,UCO,NUGT,VA,BWLD,MNST,HD,LEN,LOW,DHI
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
Biotech continues to lead the market and we will continue to look for setups from this sector. Oil closed strong and offers low risk bounce setup on slight weakness, but do not chase and manage risk closely. The ideal play will be to short off a bounce. Gold miners pullback and close to another entry at remount levels.
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)
