Quick Summary:
Key levels for the 6 charts. Stopped out of $DIG today and still holding $TKMR. We are still waiting for "pain" in the market before making our big bounce plays.
Video Analysis:
Today's intra-day video
Yesterday's game plan video
Current TradesI was stopped out of $DIG toward the end of the day at $56.39.I am still holding $TKMR.The format is a bit different today since we have ditched the regular focus list and are only focusing on 6 index/sector charts. We are watching key levels to get long for a bounce play on each of these six charts.$DIG is nearing early 2013 highs which could provide support around $55. This could provide a good bounce area. Remember $DIG could ultimately fall down to $45, if we use the prior big corrective move (discussed in yesterday's video).
We are looking at two different levels for $IWM. A weak bounce into the $108-110 range setups up a dead cat bounce short. Further downside to round number $100 setups up a long bounce play.
JO (coffee) is basing right under the old high. We are watching for a break of this level or a pullback to one of the gap fill areas.
QQQ is the easiest play here, as we are waiting to play a bounce off the 200 dma.
Semiconductors have been hit hard, but still have plenty of further downside. A multi day move down to $60 would setup a once very few years type long setup.Use this chart to study double tops and negative RSI divergence. Notice that the weak momentum shown by RSI was a precursor to the "second top" failing.
SPY isn't the cleanest chart, with many different support and resistance read. My focus is on the $190-191 range for shorting, and $183-185 to get long for a bounce setup. With all of these charts, our preference is to see pain, with big down moves before we enter.
For the most part I am staying away from individual equities for swing trades right now, and was hesitant to even post this chart. However, I have faith in your ability to manage risk. TWTR has formed a nice hammer after a strong two day pullback, and is sitting right at two moving averages. If played right, you can risk very little, and have the potential for a 5-7 point gain. Remember to be very careful if taking a setup like this.
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).
