Welcome all the 1st premium gameplan. Just to give you a quick intro. Pretty much everday you will get a market commentary from me on the action of the day. Where I see the markets and what I expect for the coming week.
I have a few different styles of trading so be aware of that. Traders all have different methods and styles. Doesnt mean one is right and one is wrong. Often 2 traders can successfully trade the same stock with completely opposite price points and exits. It all depends on the type of trade, the style, and timeframe.
On stocks above 5 bucks I use a method of swingtrading in which i buy oversold pullbacks to support. The reason I do that is I can put a stop right under which totally limits your risk. If market turns then you lose just 2-5% but if it stays strong then we got a chance of a homerun.
On stocks below 5 dollars I trade strictly breakouts or bottom plays. Either a stock is resting right at its low or it is about to breakout. Once again that is too limit risk. See a theme there?
3rd style of trading is what I call longterm/ira trading. It is just as aggressive but uses totally different methods. This is the only style of trading where I take in fundamental analysis into the picture and wait patiently for my plays to play out. Examples of this would be $nep $tmi $best $rino $trit . What I do for these plays is I buy a core pos after I do my DD. If the price dips I start adding what I call trading shares in 1/4 position increments. If the price starts to rise and the stock gets overbought on a 5 day timeframe I sell a few off in 1/4 increments. I play this game back and forth till the stock reaches its full potential. Great example of this would be $trit. We orginally found $trit in the 8 dollar range. We accumulated for a week. When it broke past 9 dollars, sold off a few trading shares. When it got oversold and dipped below 8.50 we added them back. I sold my last shares of $trit in the 18.00 range. But my gain was not 150% it was more like 300% on the trade due to the back and forth buying and selling of trading shares.
Once you get used to my lingo you will know what type of trade Im doing just buy seeing the stock and my lingo but for now I will be very detailed.
Here is my take on what we saw last week. I use the $spy as one of my proxies to gauge the health of the market and also to time the percentage of cash that I allocate towards stocks.
the market has pulled back from the resistance level at $110. Stochastics are moving out of extreme oversold conditions and show the crossover sell signal that can lead to more of a down move. The negative RSI divergence still exists.(notice that even though the market is near its highs the RSI was not. which indicates weakening of the trend)
The next area to look for long entry is in the $107-108 range, where both price and moving average support are located. If there is a breakout of the $110 resistance level, that would also give a decent long entry. (We buy on bottoms or breakouts)
The volume pattern is still very bearish. At some point if this continues, one would expect a breakdown of the 50 day moving average. The market has shown an unusually strength the last six months so my gut tells me we go higher but lets keep in mind these Red Flags on the charts and position ourselves accordingly.
Im in 50% cash right now. On a pullback to 107 area I will deploy large eggregious amounts of funds or on a breakout I will deploy. Till then what I do is make my positions smaller and I shorten the timeframes that I trade on.(quicker breakouts that might go a few days).
Here are my current positions in my main account along with prices.
I have a whole host of stocks in my IRA and longterm accounts. I can email you them if you would like.
Here are some swingtrades that will come into play on a pullback.
I like $clf for a swing. Had a nice strong volume breakout. I have it on my list watching it for a pullback. Nice support zone between 39-40. I would pull the trigger for a swing close to 39 as stochastics relieve themselves with a stop below support in the 38 range.
$anf another strong breakout on huuuuge volume. Needs to pullback close to the bottom of the breakout bar in the low 38s.
$deck looks good here on a slight pullback. If it pullbacks close to 95 area it should get a shorterm oversold reading. Volume pattern is outstanding. showing some accumulation here
If we get slight low volume strenght $skf $sds are in play with low risk if you want to add a couple shorts since they will be right near the stop. Great hedge
I know what your thinking.. why is he posting so many big stocks??????????
Well I trade everything. a 10% gain is a 10% gain. Also look at the chart for Russell2k Its broken right? The smallcaps arent firing yet. They are lagging so we need to be mindful of where the money flow is.
Look at my port I have a bunch of stocks between 8-12 dollars besides for $best and $kaz (which neither one of them is moving!) We want to buy stocks where the money is flowing.
The smallcaps will fire soon so lets build a good watchlist and look for movment
For a run in smallcaps and especially smallcap oil I like $kaz and $royl
$royl Just had a private placement with investors who bought shares at 3.25!!!! its fallen to 2.45. It has every couple weeks some good news out on new wells, prospects etc. A nice pop in Oil and Gas and you will see 3 dollars within 2 hours in this stock. Keep it on your watchlist and lock and load