Totally revamped watchlist with many new stocks. Focus list stocks to start the week: FB, BKS, BWLD, GS, MELI, WLT, XOM, GWPH, FUEL, FANG. I am still holding DUG and MUSA. SPY short in the 199-200 range.
Key Pivot Levels: 198.20 : new high resistance, 195.16 20 dma, 191.18: 50 dma and old high
Under the Hood:
The market had a strong week and is at all time highs. Volume hasn’t been great, but that can be discounted since it was a holiday week. Price is starting to ride the top of the bollinger band, and the gap between price and the 50 dma continues to widen. At some point there will be a snap back. This might be the week.
Trading Game Plan
I will look to short SPY if it nears $200, somewhere in the $199-200 range. $200 should provide a psychological barrier of resistance. That combined with the overbought nature of the market makes it worth taking a “stab” at a short, even if it goes against the trend.
Individual stocks will be traded according to setup without regard for the market. Most stocks could use a little pullback for entry.
I am still holding MUSA and DUG
Here is the Trade Journal with current open and past closed positions, along with stops and targets.
The Focus List
I completely revamped my watchlist, paying close attention to stocks from strong sectors. Sectors I like include steel/metals, education, retail/apparel, energy, biotech, semiconductor and engineering/construction. There are 62 stocks in the watchlist.
The focus list could change quite a bit day-to-day if we get some good pullbacks. Lots of great stocks in the 62 that are too extended for entry right now.
FB has pulled back to the 20 dma. Entry on weakness. Target 70 with stop under the 20 dma at $64.90.
BKS broke out on high volume and is forming a range. Entry on pullback into or near the range above the 20 dma. Stop under the 20 dma. Target should be set at least 2 times the stop.
BWLD broke out to highs and has pulled back close to the bottom of the breakout bar. Entry in the $158-160 range. Stop under the 20 dma at $156-157. Initial target at $167.
XOM has been trending since February. It recently dipped below the 50 dma but has remounted it. Entry on slight pullback. Stop under the recent low at $100.40.
WLT is for all you low priced stock lovers. It has been showing nice volume within a bottoming pattern and just remounted the 50 dma. Entry on pullback to $5.85-6.10. Stop at $5.70. Initial target 7.
GWPH has been flying and broke out over $100 round number resistance. It is now setting up as a breakout pullback setup. Entry on weakness. Stop in the $98-99 range. Initial target at $110.
GS broke out of a pullback flag. Entry on weakness around $168. Stop under moving average around $166. Target around $174.
FUEL has been bottoming and showing accumulation. It is now pullback back after breakout. Entry $27.50-28. Stop at $26.50 with target at $31-32.
Last but not least is FANG. BullsonWallStreet CEO, daytrader extraordinare and wannabe swing trader Kunal Desai emailed this chart today, a chart that was at the top of my newly developed watchlist. I have to admit the fact that he emailed me it made me want to chuck my entire watchlist and start over, but hey, he has a good eye for charts. After all, he did learn from the best!
FANG has had a nice run and has now pulled back to the 20 dma. Entry on slight weakness with stop around $85-86. Target must be at least double the stop.
There are currently 59 stocks:
These are stocks that I always watch, though they might not be in my tradeable watchlist, nor are they actually always leading the market.
All market leaders look good for entries if the market pulls back.
Sector and International ETFs
I am more focused on individual stocks than sector ETFs. Most new stocks from the watchlist came from the following strong sectors: Education, Energy, Steel/Metal, Engineering/Construction, Retail, Apparel and Semiconductors.
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.
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