Quick Summary:
Key SPY levels and the 100 dma. Current strategy is to watch for clues of bounce or breakdowns. Today took profits in SPXU and TSLA short, along with stop out in DAL. Trade entry TNA. Focus list revamped, with only few strong technical setups.
Video Analysis (5 minutes):
Today's intra-day video still applies and is an important watch. The key takeaway is look for clues of a bounce before jumping in or wait for *strong* support levels.
Key SPY Pivot Levels: Round number $200, Old high 201-202, 50 dam 197.01, 100dma 195.59 , gap 193 pivot lows 190-191
Under the Hood and Trading Game Plan:
Another big drop on high volume, which increases the probability we will see a retest of the August lows. So why did I exit my SPY short today? So many are playing a bounce of the 100 dma that I think we will get one before falling further. I normally don't pay much attention to the 100 dma, but moving averages are a trader made phenomena, so when traders start using it, so do I. Ideally I'd like to have a bounce setup another short.
If there is a bounce I will look for clues to see if it is a "dead cat" bounce that sets up the next short, or an actually re-establishes the uptrend. The key will be price action and volume.
The game plan continues to be very selective with setups and look for optimal entries. There is nothing wrong with sitting out right now and waiting for the right time to pounce.
Current Trades
I am currently holding what's left of $TSLA short and $TNA.
I took partial profits in the $TSLA short position. The stop for $TSLA has moved to entry level ($244.05). Now that I have a profit and a "free ride" I will be very patient with this trade. Either my stop or target ($230-232) will get hit.
I initially took partial profits in $SPXU, then exited completely after it gave me another point.
I exited $DAL for a small loss. The setup was excellent, unfortunately the one day I hold an airline stock this year the "ebola" news hits. I would still give this hammer entry and management of the trade an "A" and would take it again.
At the end of the day I entered $TNA, which is a leveraged $IWM ETF (alert was sent 3 minutes before close). We talked about IWM earlier this week nearing strong support. As noted in the trade alert, this is a speculative trade with a half position size and limited risk. I am risking less than $400 off a $115,000+ account.
The Trade Results Journal/Spreadsheet is up to date.
The Focus List
Days like today basically kill whatever long setups were in play to start the week. From our watchlist, the following stocks are still technically strong, though they are all vulnerable: $MNST, $GRPO, $PANW, $TWTR, $AUXL and $PNRA. As you can see, a lot of damage has been done and these could follow with technical breakdowns.
Stocks hit hard nearing strong support levels for bounce plays: $GMCR, $GOOGL, $YELP, $YINN
Stocks breaking down for short setups: $NFLX, $BIDU, $LNKD, $BITA
I am not giving entry levels here because so much of the strategy right now is tied to the market. For instance, I could give a short entry for BITA at $74, but that is nullified if the market bounces hard with lots of volume. Likewise, a long entry in YELP is nullified if the market takes another strong leg down. Look for more info after market open in alerts and the intra-day video.
Market Leaders
Market leaders were a mixed bag today, which is expected when SPY closes at basically break even. GOOGL, FB, NFLX, TSLA look healthy and ripe for entries on pullback.
Red today across the board. GS and FB were bullish setups that turned bearish today. Most others still have a ways to go before bounce strong bounce entries.
Please read the post 23 Laws of the Part Time Swing Trading the Market Speculator Way and How to Anayze 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).
