Quick Summary:
Strong sectors biotech and homebuilders break down as SPY continues move to 200 dma. Entered DIG today off bottom formation. Most of watch list hit hard and in red. Play safe tomorrow and watch the close.
Video
">http://youtu.be/rBwWvzYavH4I 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 it's move toward the 200 dma as early strength in the market was sold. My target is still the 200 dma. Notice today that the sectors that had been showing strong relative strength, where the long only money was flowing, got hit the hardest today (biotech/homebuilders). When these last strong sectors get hit, that's historically a bad sign for the market. The gameplan now is to take it easy tomorrow and just manage current positions. However, I will watch the close. If we start to see hammers or bullish engulfing patterns, we can get long a position or two over the 3 day weekend.Over the 3 day weekend I will look to build a short watch list and rubber band (oversold bounce) watch list for the coming week that will look very different from our current watch list.
Trades
I am still holding my entire SPY short (SPXU long) and RGLS (see video for strategy).
Today I entered DIG based on the bottom formation hammer candle we talked about yesterday.
Focus List
Focus list (see video for setup and entries): Not looking to make trades unless we see strength at the close. OC,CEMP,RGLS,AMBA,HELE,RH,MUSA,PIR,DHI,HD,LEN,MNST,NUGT,BWLD,TGTX,BLUE,VA,YELP,ULTA,LOW,KITE,AGIO
Sector Watch
Almost all sectors but gold/silver were hit hard. Leaders like biotech and homebuilders broke down today. We will watch these sectors closely as possible short setups next week.
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)
