Quick Summary:
SPY still at the top of the range. Entered UCO today, holding BWLD, TWTR and SPXU. Stopped out of BIS. Tomorrow focus is on commodity pullback. New earnings breakout setup THOR.
Video
http://youtu.be/5GvCETurdUsI 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.
Note on Stop Gunning (reprinted from yesterday's email alert)
I have received a few questions about TWTR this morning. Some of you set your stops around $45.70-90 and were stopped outIn today's moring report I mentioned setting it around $45.50. It got down to $45.57. I also have a mental stop in place, not a hard stop, so if I feel there is stop gunning going on, I will wait a bit to see if the level holds. In this environment where market makers are not even trying to hide stop gunning, you have to be careful.This is why I give stop ranges and not a specific number. First, your stop depends on your position size and how much you are willing to risk and second, you don't want a bunch of people at the same exact level.The cat and mouse "stop game" with market makers/algos is the most frustrating aspect of trading. If you do get stopped out, take comfort in the fact that you have taken only a small loss and it does not impact your account much.
Indexes and Game Plan
SPY continues to hang out at the top of the trading range, so not much has changed from yesterday's macro analysis. We are still using a rangebound strategy, taking quicker profits, managing stops and waiting for a momentum burst.
The game plan is to continue to key in on focus list stocks, commodities sectors and strong focus list setups.
We are in the midst of earnings season and will start to build an earnings breakout watch list, as we did last season.
Trades
I was stopped out of BIS today (shorts biotech/IBB). Note that IBB reversed and still looks weak. I will consider re-shorting.
I am still holding BWLD, TWTR and SPXU. SPXU is near stop level and if it opens around $46.30 I will exit.
Today's entry was UCO on pullback to the 20 dma and bottom of trading range.
2015 Trade Results: http://bit.ly/161Yl4w
Focus List
Commodity stocks are pulling back and near entry levels.
WOR,RMD,DIG,NUGT,X,LNKD,CYN,OAS,WLL,TX,CBT,GTLS
(see video for setups and strategy)
Q1 2015 Earnings Breakouts:
New addition: THOR
TWTR,LNKD,CBM,MTSI,XLS,GLUU,DATA,ORLY,LE,CYN,INFN,RMDBWLD,APP,QSII,X,AN,BSET (see video)
Sector Watch
Key sectors include commidities (gold miners, energy, oil, steel, chemicals), biotech, retail and semis. Semis (SMH) remounted the 50dma after showing weakness of late. We will monitor for follow through.
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)
