Quick Summary:
Word markets getting hit hard over the weekend, as are futures. Keep a level head and stay nimble. Be ready for multiple scenarios as discussed in the video (watch or listen to it!). Stay small and do not over trade, but stay ready for opportunities (extreme oversold). Currently only in 1 position.
Video Analysis:
https://youtu.be/pyium84TvSwMorning Pre-Market Video (discussion of handling days volatile negative news driven world markets and staying calm, stalking the big trade): https://youtu.be/7c0UXehaD4oI 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 obliterated the bottom of the trading range and is now testing the 200 day moving average as it closed down over 2 percent for only the 5th time in the last 2 years. In the past this has been a buy opportunity. Remember at this time we should be monitoring fear, volatility and the possible "alls clear" long signal. Until then it's best to play it safe and watch.
I am watching VIX/Volatility ETFs as we had clear breakouts today. Also a basket of stocks nearing 50 dma that could be potential bounce plays, along with biotech short setups off a bounce.
The game plan is the same as this mornings pre-market report, though key levels for SPY have changed:
"World markets getting hit hard as I type at 4 am Eastern Time, as are U.S. Futures, in reaction to news from Greece and China. Try your best not to panic today. There are a number of scenarios that could play out (talked about in the video). Often the initial negative reaction turns by the end of the day or the next few days. That being said, every once on a while something like this will start a deep correction. Be nimble and ready for anything.The game plan is to watch the biotech list from last week for both long and short opportunity scenarios. If the market does pullback hard, the strongest sectors will likely fall the hardest. We are keeping an eye on cyber security and semis as well. If stocks do fall, watch for extremes to enter long at some point this week. Over the past year when there has been the most fear, it's been a slam dunk long setup on SPY. Watch the stochastic indicator for extreme oversold levels (one line is already at 9). Also be on the lookout for late day reversals/strength and hammer candles."
Trades
Still holding JNUG and entered SPXL today (see video).
The 2015 spreadsheet: bit.ly/161Yl4w (needs to be updated)
Note: JNUG is not our typical swing trade as we build positions and even average down if prices go lower. This is a small position that allows me to enter more on deeper pullbacks without getting stopped out. This setup has been discussed in the last weeks videos.
Focus List
For now keeping trades at a minimum until we get a clear signal. I will be watching the volatility ETFs closely (XIV, UXY, VIXY, UVXY) and FAZ (financial bear) SEE VIDEO
Some stocks to watch: FIT, TANH, PANW, FEYE, LULU, VDSI, WBAI, GWPH
The biotech list (long and short): ANTH,RVNC,RARE,HALO,INSY,GILD,BLUE,HRTX,POZN,MNTA,RDUS,DPLO,EGRX
Lists from last week:
Stocks to key on for Friday: RGSE, VBLT, TANH, GTLS, LEN, MTH, FIT, SGYP, MNST, IPI.
Possible shorts (extended bearish candles): PANW, FEYE, HRTX, VDSI, POZN, AMED, ISNY, BLUE, HABT
Keep an eye on residential real estate (RYL, LEN, MTH), cyber security (GUID, CYBR, FEYE, PANW, VDSI) AND IPOs (WING, FOGO, FIT, SEDG, TANH).
Focus List to Start Week of June 22: WING,FOGO,FIT,LULU,MNST,GOOGL,GTLS,KITE,HABT,SHAK,TWTR,QIWI,DSKY,NES,YOKU,TANH,MNKD,MRC,ZIXI,IMGN,KOP,LEN,RYL,MTH,SEDG,GUID,FEYE,PANW,CYBR,VDSI
Second Qtr Earnings Breakouts: CE, SKX, GPRO, AMZN, TZOO, NFLX, MDSO, DNKN, HAS, GIMO, ORLY, RCII, RTEC, DPZ, GPRO, BLDR, ORIG, MOMO, RRGB, TTWO, QIWI, NES, Yoku
Energy focus list: TK,OII,FTI,NOV,XEC,CRZO,ESV,NBR,OAS,VLO,CLR,OIS,WNR,FANG,SCTY,DVN,CVX,DRQ (see video)
Sector Watch
Housing and ag have been strong during market pullback. Keep an eye for sector rotation.
Key sectors include biotech, housing, software applications and internet, gaming, select retail, steel, oil related and cyber security.
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)
