Quick Summary:
SPY breaks below $200 and is testing $199. Current positions $SCTY, $SPXU, $GWPH and $DGLY. New focus list stocks $YELP,$YY,$VRNS,$RALY,$PNRA,$JRJR,$MNST,$BIDU,$TSLA,$ECTY,$SPLK,$BLOX,$LULU.
Video Analysis (4 minutes):
Analysis of my four current positions (this is up on the public blog)
Friday Intra-day morning analysis
Key SPY Pivot Levels: Round number $200, Old high 199, 50 dam 197.38, 197.50 and $196.50 gap fill and support levels
Under the Hood and Trading Game Plan:
SPY broke below $200 on increased volume and is testing $199. As expected there has been a lot of back and forth with this move down/pullback, so we must use patience with the SPY short/SPXU swing setup.
A break below $199 puts a test of the 50dma and gap fill areas in the $196.50-197.40 range. This is a good area to set short targets. Remember that all we are playing is a pullback--I am not bearish on the market as a whole, at least until we get further signals. That is why I continue to look for pullback entries in momo and breakout stocks.
The current game plan is to manage the SPY short position. I continue to look for long setups on momo stocks, but will not chase.
Current Trades
I am still holding SPY short via SPXU, and long SCTY, GDLY and GWPH. SCTY broke out strong on Friday.
The Trade Results Journal/Spreadsheet is up to date.
The Focus List
Focus list to start the week: YELP,YY,VRNS,RALY,PNRA,JRJR,MNST,BIDU,TSLA,ECTY,SPLK,BLOX,LULU (Charts)
A few to key in on:
BIDU is pulling back to the bottom of the breakout bar. An entry in the $210-214 range, with stop at $208 and target at $230 offers good reward to risk.
VRNS broke out of a bottoming pattern and is basing over the 50 dma after remount. Entry in the $22.50-23.50 range. Stop around $21.75-22. Target can be as high as $30 depending on risk and time frame for holding.
TSLA is consolidating after breaking out to new highs. Entry in the $273-276 range. Target $290-300. Stop around $269-270.
ETF YINN (leveraged China) has pulled back close to the 50 dma. It doesn't seem to trade with the 50 dma, but oversold stochastic could help with a bounce if the stock pulls back a bit.
Short Setups:
My focus now is shorting SPY via SPXU
Market Leaders
NFLX looks ready to pullback after Friday action. TSLA consolidating post breakout at decent entry level. GOOGL hammers at 50dma fail. GS surprisingly breaks to new highs.
Please read the post 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 rules if you trade off the Report.
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