Quick Summary:
SPY remount builds on failure and is on its way to the 200 dma. We will look for signals, but no focus list stocks in play right now. Possible speculative NFLX short, playing a pullback. See below for position updates and management. Target for SPXU based on 200 dma for SPY. GOOGL earnings tomorrow post market. X could be first signal of steel bottom.
Video
http://youtu.be/7LQxwFRfgxII 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
Yesterday we talked about the moving average remount failure and our bias to the downside, and today it played out perfectly as SPY closed at $200 after holding $205 just two days ago. Our target is still the 200 dma around $197. The question for us now is how we play this in the coming days. After this type of big move down, it is tough to get long or short because while there is more downside, we could bounce. Therefore, I like to watch how things play out and look for confirmations. Even if my focus list stocks are near entry, I will likely hold off on entering until we get a clue.A small weak bounce could get me to add more shorts. A strong bullish candle, like a hammer or engulfing candle, would allow me to get long again.The gameplan for tomorrow is to manage current positions and monitor the market. I am not keying in on any focus list stocks. If we get a strong reversal signal, I will send alerts out and talk about it in an intra-day video.
We are in the midst of earnings season and will start to build an earnings breakout watchlist, as we did last season.
Trades
Exited remainder of NUGT position at break even. Initial half was for profit.
Still holding SPXU (SPY short). RGLS is near exit after intial half profit. DIG is still over a point from entry after profit on intial half.
**note: you can see the power of adapting to market conditions and taking partial profits in this type of market.
GOOGL earnings are tomorrow post market. I will hold during day and assess at the end of the day unless the $512 stop is hit.
Focus List
Focus list (see video for setup and entries):
I am not keying in on any focus list stocks yet (see video). I am considering NFLX as a short (playing the pullback). Here is yesterday's list in case the market improves. EA broke out today. HABT,LOCO,EA,WBAI,KITE,AMBA,INFN,QSIIQ1 Earnings Breakouts:New additions: ABMD, TUP, X BSET, QSII, CYN, INFN, RMD, NFLX, SBUX (see video)
Sector Watch
Sectors of note: Energy, Emerging markets/Brazil/India, Biotech, Retail and Gold Miners all were hit hard in red today.
We have talked about stalking industrial metals like copper and steel for future bottoming plays in a previous video. Today steel leader X broke out from the downtrend on earnings. This could be our first signal in these sectors. Keep an eye out.
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
(twitter.com/PaulJSingh)
