12/15/2009 Gameplan - Bulls on Wall Street

12/15/2009 Gameplan

  Judging from the chart of $spy the ideal long entry is a pullback to the moving average OR a confirmed breakout above whats been a pretty long trading range.  Today SPY floated towards resistance (the recent highs). Typically when market is range bound for such a longtime there is a decisive break to the downside or upside. The break tends to break in the general direction of the longer term trend. That being said as a swingtrader when mkt reaches near resistance I always hedge my bets and add some shorts and take some profits in my longs. As of this morning I will in almost 50% cash A low risk short setup is in place that is easily manageable via $spy or if ur feeling frisky $sds. An entry at $112-112.50, with a 1-2 point stop and a target around $109 will offer 2:1 or 3:1 reward to risk. 

If price breaks out hard, the short setup is invalid and a long breakout trade sets up.
 
thats how swinging works. Sell/short at resistance….BUY at support or breakout!
 
I added $hpj as a short yesterday at 8.80 as its very very extended. On a flat open I might add some SDS for a swing. If we break above the range. I will unload the $sds for small loss and go long and buy stocks near breakout.

 
 
 
 
For the Swingtraders/Partimers
 
Bullish:    X, AGP, MON, MOS, ODFL, GLD, CSH,  BAX, SBUX, BCO,
 
Bearish:   FCX, JCP,  PCU,
 
Nice breakout pullback here. sitting on moving avg and horizontal price support. Keep note of what is a good volume pattern here.
 
 
 $csh is another good play for swingers. Strong uptrend holding and bouncing off support. Good volume pattern, red days smaller than green.
 
 $anf this can be a good low risk short on a low volume bounce upwards to that resistance (see the m.a.?) That would set up a bear flag. This stock has broken down. Huge Huge volume distribution. Any low vol bounce thats weak will be an easy entry to short with a stop above the moving average. Make sure to buy as close as possible to the resistance to limit risk. Your target would 34 dollars (the low)
 
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 For MOMO traders:
$arry will be in play today. They had a big deal for 60m and the stock is going crazy premkt
will have it on watch for scalps
 
$anx—-on watch. bio mania is crazy last week. I saw at least 10 500k blocks going through after hours
all the regular chinese low float is still on table
 
$visn setting up for big move. YOu can play this two ways depending on whether ur a swingtrader or a breakout trader.  You could buy the breakout of 11.50 for a scalp.
 
Or if your a swinger you can pull a buy at the bottom of the range its in near 10.50 and swing it in that range while holding some for potential breakout. Pretty good suppport at 10.50 zone so stop placement is easy
 

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