Quick Summary:
Note: Tomorrow is a half day and Friday the market is closed. This is the last report until the Report for Monday, which will come sometime before Monday morning. I do not plan to trade tomorrow, so there will likely be no alerts. I will have my stops in place for DUG and MUSA, and you should too if you are trading them.
The Market
Key Pivot Levels: 197.03 : new high resistance, 194.68 20 dma, 190.75: 50 dma and old high
Under the Hood:
Not much of note today, which is to be expected the day before a shortened trading day and 4th of July. Volume was low today, but it’s meaningless. The same analysis from Tuesday and Monday applies.
Trading Game Plan and Risk/Trade Management Tips:
This is a reprint from yesterday because it still applies:
“For the most part, take it easy and wait for things to setup. It’s tough to sit on your hands, but sometimes that’s the best route to take. Manage current positions and monitor watchlists. Do not chase stocks that are hot or that you feel you missed. Inevitably that’s when they turn around.
While I advise taking it easy, I am never opposed to taking low risk shots even if they end up being losses, as long as they are *small* losses. If NFLX pulls back a little and you feel there is a decent support area to place a stop that would give you a 4:1 reward to risk, go ahead and take it.
Just remember when things are extended, they can snapback at any time. This is how we adjust. We take smaller than normal risk. If you normally risk 1 percent, get it down to .5 percent or lower. If you normally take trades with 2:1 reward to risk, bump it up to 4:1. This is what a trader does to put things in his or her favor. You must adjust.
Current Trades
I entered focus list stock MUSA today (alert was sent). Entry was at $48.73. Stop is under the 50 dma moving average $47.85-48. Target around $52.
I am still holding DUG.
Here is the Trade Journal with current open and past closed positions, along with stops and targets.
The Focus List
Most of the focus list is still extended. Unless you see a great setup, there is not much reason to enter tomorrow and hold over the holiday. Just manage your positions and start fresh on Monday.
MUSA is still near entry level, as is GS. NFLX started a pullback from breakout. I will watch this one closely. The long tail at the top of the range in CLDX suggests it might pullback.
Click here for link to monitor the focus list. See yesterday’s report for entry charts for these 4 setups.
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.
The big moves in market leaders today were TSLA and FB, both moving to the downside with 4 percent and 2 percent moves. While neither of them violated support levels and are still within trading ranges, this is not the type of pullback you want to see if you are bullish. Often, when a few of these types of leaders move like this, others will follow a few days later (as has been the pattern to the upside). It’s worth keeping an eye on.
Sector and International ETFs
I use the 5 day trend vs the market to track money flow into sectors. Of the sectors I have been following, Biotech, semi, India and a few countries continue to see good money flow. The energy space is seeing some negative money flow, but not enough to be concerned about that as bullish setups.
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)
