Quick Summary:
Thoughts on overall game plan. Focus list TSLA, FEYE, ENDP, MNST, ZU, YY, ARUN. Market leaders mixed with pullback failure at highs or continuation of short setups.
Overall Game Plan:
Friday's note still applies: This is one of the strangest markets I have traded in the past 8 years. There is little excitement about being at new highs, which there normally is. Why is that? It is because few stocks are participating. At this moment IWM is a better indicator of how most stocks are doing right now.In the near future, I am going to change my approach a bit. First, I am not going to let my market analysis come into play with my individual stock trades. Due to the extended nature of the market, I have been quick to take profits. I will switch over to some of my shorter term setups. Finally, I am going to be very selective with trades. For those that want to trade more, I will post daily updates of setups that are available for those that want to take them.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:
While the pullback at highs was minor on Friday, many momentum stocks were hit hard. Some were wondering why I did not exit $SPXU on Friday though it dipped below my stop level. The reason was options expiration plus, as many members kindly reminded me, ex-dividend day for $SPY. I am not going to give $SPXU much more room.
Current Trades
I am holding $SPXU and was stopped out of $DGLY Friday.
The Trade Results Journal/Spreadsheet is up to date.
The Focus List
TSLA gapped down from the weak "dead cat bounce". There is still room to the downside, with targets at the 50dma and around $240 if that level is breached. I would enter on slight strength.
MNST continues to consolidate after the big gap breakout in similar fashion to TWTR. Entry on pullback to support level. Stop below that level and target at $95.
FEYE is basing above the 50 dma and looks to be bottoming. Entry in the $33-33.50 range. Stop under the moving average with target around $40.
ZU is also basing off a bottoming pattern and shows great volume. Entry within the bottom of the range, target $40 and stop around $35-36.
ENDP is starting to form a range post breakout. Buy the bottom of the range. Target around $72 and stop around $65.
YY and ARUN setups from Friday are still good.
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.
GOOGLE has hit $600 and is moving to a major resistance level. GS pulled back hard at the breakout level, as did GMCR. NFLX and TSLA still look like good short setups.
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).
