Quick Summary:
Still watching the 6 charts for bounce plays, but remain cautious. Trading small. Took $TSLA bounce daytrade at 200 dma and entered $DIG at close. Still holding $TKMR, which was one of the few stocks to make gains today. $QQQ in play.
Video Analysis (must-watch today):
The format is a bit different today since we have ditched the regular focus list and are only focusing on 6 index/sector charts. The video gives a good overview of of the game plan tomorrow; I highly recommend you spent the 8 minutes watching it. Video Review:The key chart for tomorrow is QQQ, mainly because it has clear support looming as it has not yet hit the 200 dma. Morning weakness represents a good bounce opportunity for a quick trade. I will likely use leveraged ETF TQQQ or QLD.
DIG entry at end of the day was small due to the fact that there is still plenty of downside. In 2011 DIG dropped 50 percent and right now we could lose 15 points to get to that level.TSLA daytrade today is not the usual model for our trading, but in this market these types of moves need to be quick. Entry was at the 200 dma and sold into strength for a nice profit. See Trade Results here.
SPY needs to hit $185 before we get serious about a bounce play (this is revised from previous discussed levels--see video).IWM needs to hit round number $100.The safe way to play an energy bounce is ETFs like XLE and DIG. However, those more risk tolerant can play equity setups for more risk and more reward. I will highlight levels and stocks as they near levels. Here is the link:http://finviz.com/screener.ashx?v=351&t=UNT,ORIG,FTK,PES,TROX,CBT,QRE,WLL,PTEN,HES,NBR,APA,DVN,NOVSemi conductors still have more room to the downside. Febuary lows are still about 10 points away on $SOXL.Remember not to go big on bounce plays until we get clear guidance and clues. I am only willing to risk $300-500 on any given trade, and will only make one or two selectively. That equities to .2-.5 percent loss of account on any trade. Very small. Feel free to stay in cash.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.
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