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 : recent old high, 197. 11 dma, 194.05: 50 dma
Under the Hood and Trading Game Plan:
SPY did little to dispel the concerns over the new highs that have printed on low volume and an RSI momentum divergence. Volume remains low. My market bias is still neutral and I will trade with less aggression and lower position size.
I am still looking for long setups in momo stocks that have pulled back are ready to bounce, and developing short setups. Position size will be slightly lower than normal.
Yesterday I entered GMCR. I am still holding TSLA.
The Trade Journal
The Focus List
Z broke out hard yesterday on rumors that out would buy out TRLA, another stock that has been on the focus list in recent days. While I had not entered, many of you did. For now it is off the watchlist, but can come back on a pullback. Same goes for TRLA. BKS, GWPH, BMRN and GMCR are near entry levels. I am concerned about the price action in IPXL.
KS broke out strong and is no longer a short setup. GRMN, FSLR, MSM and SDRL are all near entry levels.
DAL is in the midst of what could be a topping head and shoulders pattern. It was on the shorts focus list, but was removed after the break out bar two days ago. If yesterday’s big down move would have closed a few ticks lower it would have broke below the 20 dma (it did breakdown below the 50 dma) and printed a bearish engulfing candle pattern (second day candle completely envelopes previous day candle at resistance in an uptrend). Nevertheless, the stock looks bearish again.
There are two ways to play this depending on the strategy you look. Early anticipation play would enter on slight strength near $38.50-39. Stop would be around $40-41, with target at $35. A Confirmation play would look for entry on weakness under $37.90, with target at $35 and stop between $38.40-39.
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.
From yesterday’s breakout list, it looks like HA is off the table after yesterday’s down candle. INO and RES could be setting up as bo-pb entries soon.
These are stocks that I always watch, though they might not be in my tradeable watchlist, nor are they actually always leading the market.
WE have talked about the Z breakout. FB also broke out strong. I will stalk a pullback into the gap area for entry. CAT broke down hard, gapping down under the 50 dma. This is now a short setup on pullback toward the moving average. Stalking GOOGL on pullback toward old trading range.
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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