Quick Summary:
SPY breaks down below 50 dma. LAZ hammer candle trade entry. Market game plan dictates caution.
Video Analysis:
The intra-day video sent during market hours went over $SPY and a few focus list stocks.
Overall Game Plan:Expect the unexpected, which becomes the expected. Got that? That's how SPY has been acting lately. Usually yesterday's action would lead to at least a short-able "dead cat bounce", but this market's not doing anything according to convention. Today we finally got that big move down, breaking the 50 dma.The expectation now would be further downside to the levels I have targeted for a while now. I will continue to hold my SPXU position, but likely will not make any other big plays based on this analysis.I am going to continue to play it safe and take on fewer positions than normal. Until we get some clear direction or indication of a bounce, the best thing to do is play it safe. Make the big bets when we have some major clues.Key SPY Pivot Levels: Round number $200, Old high 199, 50 dam 197.54, 197.50 and $196.50 gap fill and support levels
Current Trades
I am holding $SPXU and $LAZ. I was stopped out of $FEYE today, and will watch for a remount of the moving average.
$LAZ defied the market today. It printed a hammer at the close indicating an overreaction to market conditions. A bounce is expected off this hammer. There are two ways to place a stop here. A loose stop under the low of the day is the safest route, but it requires a bigger target. In this market that is tough as many stocks get whipsawed before hitting targets. If looking for a closer target, place the stop in the middle of yesterday's bar.
The Trade Results Journal/Spreadsheet
The Focus List
Until we get some market direction, I am not looking to make any entries and will wait for some good bounce setups as the market tests oversold levels. I will continue to look for "hammer" setups at the end of the day, but do not know which stocks will show up in scans until that time. If looking for these setups, watch for an e-mail 5-10 minutes prior to market close.
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.
Every market leader was hit hard today. $GOOGLE gave up yesterday's gains and more. $GS and $FB pulled back hard from highs. $AMZN looks ready to test the $420 lows.
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).
