Quick Summary:
SPY holds 50 dma for possible entry. 5 new breakout stocks to watch. Focus List remains the same but few are near entry levels.
Admin Notes:
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Video Analysis:
Today's Report is in video format with a written summary below (8 minutes).
Video Notes:
The character of the market has changed. $SPY remounted the 50dma, and $QQQ is testing all time highs. While we are likely to get some consolidation and even a pullback, we are now back in the uptrend. I will still keep my eye out for a failure, but my overall bias is now slightly bullish.
Indexes
Little changed today, which is surprising considering it was a fed day. $SPY is sitting above the 50 dma and we make look to enter tomorrow. If 50 dma fails, we could get a retest of the 50 dma.
In the video I discuss assessing the volume pattern in SPY. You must use a deeper analysis than just looking at the size of the red and green bats. That big red bar coupled with a hammer candle could be a capitulation event that discounts distribution and actually is a postive. Today's up volume on a down day was more fed related than anything. Also remember that volume is more important for individual stocks than indexes.
New Breakouts
Five new breakouts added to the watchlist: RFMD, ACCO, AMED, X, TQNT.
Yesterday's breakouts are starting the process of forming ranges, but not at entry levels yet. $AN, $TRNX, $MSG, $RCPT, $VDSI, $BCOR, $CATM, $BWLD
Focus List
Focus list stocks $MEG, $LULU, $BIDU, $BITA, $GMCR, $LOCO, $MNST, $YY, $PANW, $ACOR all look good on slight pullbacks to support levels.
$GPRO is bearish, but still watch for a remount of the 50 dma. This could setup a move to old highs.
$BABA has gone parabolic and has some good entry levels on pullback. Watch for ranges to form.
Click on tickers to see thumbnail charts. Full analysis in video.
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.
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