Quick Summary:
SPY remount fails, closing below 50 and 20 dma. Expect test of pivot lows. Tighten setups to few focus list and earnings breakout stocks. Took partial profit in NUGT, entered GOOGL and still holding DIG, RGLS and SPXU (SPY short).
Video
http://youtu.be/Z8Q0b7eRUT0I 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
We now have a remount failure as SPY gapped down below the 50 and 20 dma. The bottom of the pivot low and 200 dma our now in play. Due to this development we have a slight change in gameplan.Our bias is now to the downside, so I will be more cautious with long entries. We have purposely taken up longs in sectors that do not necessarily move with the market (Energy and Gold) and one strong sector that has often bucked the market trend (biotech). Our other position can move with the market, but has earnings coming (GOOGL), along with a market short (SPXU).The gameplan is to use caution, tighten up the focus list, only going after select stocks and earnings breakouts. If there are no trades to make, sit tight.
We are in the midst of earnings season and will start to build an earnings breakout watchlist, as we did last season.
Trades
Still olding RGLS, DIG and SPXU (short SPY)
Took partial profit in NUGT (entry $18.22, partial exit $19.46) with stop moved up to entry on remaining position.
Entered GOOGL at $524.45, giving it around a 10 point stop. I will assess price action tomorrow before deciding to stay or exit before Thursday earnings.
Focus List
Focus list (see video for setup and entries):
HABT,LOCO,EA,WBAI,KITE,AMBA,INFN,QSIIQ1 Earnings Breakouts:I will look for good entry INFN or QSII tomorrow.BSET, QSII, CYN, INFN, RMD, NFLX, SBUX (see video)
Sector Watch
Sectors of note: Energy, Emerging markets/Brazil/India, Biotech, Retail and Gold Miners.
We also talk about stalking industrial metals like copper and steel for future bottoming plays in a previous video
Last Quarter Breakouts
This is the earnings breakout list from 2014 4th quarter. We continue to monitor.
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
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