SPY at new highs, but not strong enough to get aggressive. Took profits in BWLD. Many focus list stocks near pullback entry levels. Shorts setting up also. BRMN new addition to focus list. Market leaders look good overall, with a few setting up.
Please read the new blog post How to Analyze Your Swing Trade Results. It goes over the 2 month results of the Trade Report trades and how I analyze my results and trading methodology.
Key SPY Pivot Levels: 198.20 : new high resistance, 196.96 20 dma, 193.86: 50 dma
Under the Hood and Trading Game Plan:
SPY has entered new high territory, albeit on low volume and barely clearing the old high. This is not the type of strength that signals a strong upside move is coming. My current market bias is neutral and I remain cautious about making any aggressive bets.
I am still looking for long setups in momo stocks that have pulled back are ready to bounce. Position size will be slightly lower than normal.
I took profits in BWLD yesterday (alert sent). TSLA is currently my only position.
The Trade Journal is up to date.
The Focus List
Z, CTRN, BKS, GWPH and GMCR are all near entry levels (see previous reports this week for entry analysis). I do not plan to get too aggressive or take on many new positions right now, but I may enter one or two positions today. New addition UIS already has been negated as a long setup after a big breakdown.
Post earnings the short setup in DAL has been invalidated. KS, GRMN, MSM, FSLR and SDRL are all near short entry points.
BMRN is a volatile stock that had been on a hard two month downtrend. It seems to have put in a short term bottom formation and now broke out over the 20 and 50 dma. Entry on slight pullback to $60-61. Target $65-70 depending on your entry and stop levels. Stop around $57-59.
During earnings season I keep an eye on breakouts. These are not necessarily focus list stocks that are near entry levels now, but I keep a breakout list and over the days and weeks ahead, I watch for good pullback or post break consolidation entries.
These are stocks that I always watch, though they might not be in my tradeable watchlist, nor are they actually always leading the market.
While I am not sold on SPY at new highs, I do like the action of our market leaders, which is a good sign for the overall market. GS has already broke out post earnings. FB is up 6 points pre-market post earnings. TSLA, GMCR and Z are all sitting at support near good entry levels. CAT and NFLX have negative patterns and could become short setups in the near future.
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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