Quick Summary:
SPY near highs with broadening formation. New trade entry DGLY. Focus list addition ENDP. TSLA, FEYE, MBLY, IMPV, ZU, LULU, SPLK, MNST, DGLY all setting up.
No video analysis today. This morning you should have received a written "morning update" via email.
Key SPY Pivot Levels: Round number $200, Old high 199, 50 dam 197.54, 197.50 and $196.50 gap fill and support levels
Under the Hood and Trading Game Plan:
SPY is not cooperating with bulls or bears as it consolidates near highs. The second it looks ready to breakout or breakdown it reverses. This has created the somewhat rare "broadening formation", where we get higher highs and lower lows due to a number of fake outs. Near resistance this is generally a bearish formation. We also have that pesky RSI divergence. Today's volatility created a doji candle as price failed to hold the attempted breakout.
My patience with the $SPY short/$SPXU trade is slowly coming to and end and I may get out in the coming days unless we see some resolution. I also have a stop placed above today's highs (below lows on SPXU)/
The current game plan is to manage the SPY short position. I am looking for both long and short entries in momentum stocks.
Current Trades
I am holding $SPXU and entered $DGLY today (alert was sent).
This is my second attempt at DGLY. When i entered at the bottom of the breakout bar around $23 I had mentioned there was another entry at the gap fill level. It reached that level today. Entry was at $18.38, with stop below yesterday's low. I will likely take off half position at $20-21.
The Trade Results Journal/Spreadsheet is up to date.
The Focus List
TSLA is starting to pull back up to resistance levels. Unless it start to move with strong volume, I will look to short in the $266-270 range. Stops and targets need to be assessed depending on entry level.
IMPV has pulled back to the 20dma. Nice volume and price pattern. Entry $30.50-31.25. Stop $29-30. Target $34.
MBLY is bouncing off the 20 dma. Entry $47-49. Stop $45. Target $55-57.
FEYE on breakout of the $37.50 or pullback to moving averages $33.
Other stocks setting up as discussed in previous videos: ZU, LULU, SPLK, MNST, DGLY
New additions:
ENDP is a breakout breakaway gap (see blogpost on the setup). I will be looking for a good entry tomorrow, hopefully there will be early morning weakness.
Market Leaders
These are not necessarily stocks leading the market, but stocks I watch as an indicator for strength in the market and sectors, and use for as individual trades.
GMCR near highs. GOOGL looks ready to test $600. GS continues breakout. NFLX looks ready for bounce before possible second leg down.
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.
New subscribers and trial members please leave me any feedback/comments in the comments, via email (singhjd1@aol.com) or twitter (twitter.com/PaulJSingh).
