Quick Summary:
SPY put in a strong candle on Friday which may lead to a short term bounce before resuming back to the 200 dma, Current positions SPXU, DHI, DIG, RGLS. We will watch emerging markets closely to see if they are putting in a bottom formation. 14 focus list stocks.
Video
http://youtu.be/4KbyolwqiUAI 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 bounced on Friday putting in what is close to a bullish engulfing candle pattern. We expect some back and forth on our way to the 200 dma, so I will continue to hold the short position. If we do get a bounce, we can play some longs and watch for shorts to setup in the financial sector, along with stocks that could be rolling over like BABA. Emerging markets are beginning to come to life, showing what could be a bottom pattern similar to energy and gold miners.The game plan is to continue to manage our four positions, watch our watch list for entries and wait for possible shorts to setup later in the week.
Trades
I am still holding my entire SPY short (SPXU long) and long RGLS and DIG (see video for strategy).
On Friday I entered DHI near the close based on the hammer candle formation which tested the 200 dma. When we see a major support level like the 200 dma fail, then recover intra-day and form a hammer candle, we can enter long as a pullback entry.
Focus List
Focus list (see video for setup and entries):KITE,CEMP,OC.,LOCO,VA,MNST,BLUE,CMG,PIR,AMBA,RH,TTWO,BWLD,HABT,AGIO
Sector Watch
Sectors of interest include Biotech, Home builders, Retail, Gold Miners and Energy. This week we are also adding emerging markets (Brazil, India, Russia). See video for analysis.
We will also watch the financials sector later in the week for a short setup if we get a bounce.
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)
