Quick Summary:
SPY fails to hold 50 dma, back in range. Continue to key on strong focus list stocks, energy, metals and chem. Today's entry UCO, still holding NUGT. Today's video talks about importance of trade management.
Video
http://youtu.be/KJcCi_UWf_0I 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 failed to hold the 50dma, forming an inverted hammer and is now back within the 50 and 200 dma range. This is what we somewhat expected, which is why we did not go long the index on the close yesterday. For now we expect range bound action between the two major moving averages. Once one of these levels clearly breaks, we will form a stronger long or short bias.
Market leading sector Biotech seems to be weakening as the sector continues to form "tails" with no follow through. This could be a possible short setup in the near future.
The game plan is to continue to key in on strong stocks, earnings plays and oil/energy/metals for pullback entry. We will not chase or get extremely aggressive.
We are in the midst of earnings season and will start to build an earnings breakout watch list, as we did last season.
Trades
Still holding NUGt, which is about a point above entry.
Entered UCO (crude oil leveraged 3X ETF) on pullback to play a possible continuation of bounce. The top is tentative, around $7.30-7.50 (entry $8.20) with a target around $10-11. As noted in the alert, this is a cautious half size "feeler" position.
2015 Trade Results: http://bit.ly/161Yl4w
Focus List
Focus list (see video for setup and entries):
We continue to look for pullbacks and good value reward to risk. No chasing while at the top of this rangebound market. From the list of 30, I am keying in on 15: DIG, WLL, OAS, BWLD, WOR, TX, CBT QSII, INFN, GOOGL, LULU, ULTA, GTLS, CBT and LOCO.
LULU,WBAI,BWLD,YELP,ULTA,QSII,X,WOR,TX,NANO,RTEC,AN,INFN,RMD,NUGT,GOOGL,LOCO,UCO,DIG,HSIC,NTST,SSI,ALE,P,OAS,WLL,GTLS,CBT,AAPL (see video)Q1 2015 Earnings Breakouts:New Additions:KSS , BBSINANO,RTEC,AN,BSET,QSII,CYN,INFN,RMD,NFLX,SBUX,ABMD,TUP,XWLL,GTLS,CBT,AAPL (see video)
Sector Watch
IBB weakening. We will monitor for possible breakdown. Oil/Energy/Industrial Metals/Chem pullback a bit.
Sectors of note: Energy, Emerging markets/Brazil/India, Biotech, Retail and Gold Miners all strong, with homebuilders leading.
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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