Quick Summary:
SPY bollinger band analysis. One new additions to watchlist, the rest remains within range. JNUG added to ETF list.
The Market
Key Pivot Levels: 196.60: new high resistance, 194.42 20 dma, 190.353: 50 dma and old high
Under the Hood:
Today did little for the overall market as we continue to watch 3 key levels on the SPY chart. The old high, the 20 dma and converging old high/50dma support. I am looking at long entry on breakout of $196.60 or on pullback to the 50 dma.
Let’s take a look at the bollinger band today. The indicator is great for eyeballing range expansion and contraction. Notice on the chart that prior to big moves, the bollinger bands were contracting. That is when you want to enter. It looks like the bands are starting to contract, after over a month of expansion. I think this trade is going to go one of two ways. Either price will float higher as the bollinger bands contract, and then we will see a correction that expands the band, or we pullback now to the 20 dma or further, and the bands will then contract for a move up. Those are the two setups I will use to trade the market.
Trading Game Plan:
Watch SPY for entry levels, as discussed at the end of last week and today. Continue to monitor focus list stocks and enter on buy points.
Current Trades
Today I exited CSIQ after it hit my $30 target level, and was stopped out of SPY. CSIQ continued to move after I exited, but I didn’t feel comfortable staying in because there was not a good support level other than the level I had already moved up to.
I was stopped out of QID as my hard stop was hit.
I am still holding LNKD, WOOF long and DUG as short play.
Here is the Trade Journal with current open and past closed positions, along with stops and targets.
The Focus List
New addition:
GS is holding the 20 dma which is also an area of price support. Volume pattern within range looks good. Entry here with target at $171 and stop at $165.50 offers a 2:1 risk ratio.
Most of the focus list is still trading within range, but not at entry levels yet. NFLX and TWTR are moving closer, and OIL actually did hit a good entry level today. EQM looks like it is basing higher than my entry level, so I may re-adjust the best entry level for it. We’ll see how it does tomorrow. See yesterday’s Report for charts with analysis.
Click here for link to monitor the focus list.
Market Leaders
These are stocks that I always watch, though they might not be in my tradeable watchlist, nor are they actually always leading the market.
Not a ton of action as most of the leaders stayed within ranges. At some point Z will have to pullback to the 2o dma.
Sector and International ETFs
GLd is very extended and hard to find entry, but JNUG is setting up nicely with room to move higher. JNUG is a gold miner play, rather than the metal itself. It is also leveraged 3X, so expect some volatility. It needs a slight pullback for entry.
Please read the post 23 Laws of the Part Time Swing Trading the Market Speculator Way. 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)
