Quick Summary:
SPY breadth improves on bounce, though still lack of breakouts. Focus list stocks FEYE, MNST, LNKD, BIDU, LULU. Market leaders bouncing with market.
Video Analysis:
The intra-day video sent during market hours went over $SPY and a few focus list stocks.
Overall Game Plan:
On Friday I talked about how strange this market has been, especially for swing traders. In that vein, today did not disappoint. We were expecting either a continuation of the pullback or a light bounce. Instead, to the surprise of most, we got a strong bounce. For the first time in quite some time, breadth was actually decent, with 240 of 500 SPY stocks beat the .78% gain in SPY. I am still not seeing a lot of strong breakouts, but today was still an improvement.One day does not tell us a lot, especially in this whipsaw market. However, if this type of action continues, it will give us the underlying momentum we need to see a big run once new highs are hit.I am going to continue to play it safe and take on fewer positions than normal.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:
Another "say what?" move for the market, as $SPY bounced strong off the pullback. Breadth is improved, though we still have a lack of strong breakouts. Let's see how this plays out. If it continues and we breakout to new highs, we might get a sustained move rather than breakout failure.
I will continue to manage the $SPY short (via $SPXU) and be *very* selective with long positions. It's best to be cautious until we see some signs of buying.
Current Trades
I am holding $SPXU and $FEYE. FEYE is still at a decent entry level above the 50 dma (see video or past recent reports)
The Trade Results Journal/Spreadsheet is up to date.
The Focus List
I am looking for decent confirmation bounces off moving averages or remounts. Stocks that are bouncing below the moving average are not of interest as longs (like $TSLA, $YY, $YELP). That changes if they remount the moving averages.
Recent focus list stocks $MNST, $FEYE, and $LULU are still close to good entry levels at the bottom of ranges.
$BIDU bounces strong off the 50 dma. Look for entry on slight weakness with stop under yesterday's low and target around $230.
$LNKD bounced off moving average support. Stop below the moving average with target in the $225-230 range.
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.
Yesterday we talked about $CAT and $GOOGLE being at support levels, and both had nice bounces today. The other signfican't bounce was $GS bouncing back up to highs. Waiting to see if $NFLX and $GMCR pivots hold.
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).
