Key SPY levels, for short and long setup. Focus List: NOV, CAT, WBAI, DECK, TSLA, WYNN, YY, Z. Earnings breakouts UA, DECK and TRLA setting up. Review first week of videos if you haven’t watched them already.
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Key SPY Pivot Levels: 199 : recent old high, 195.06: 50 dma, 190 gap fill and support level
Under the Hood and Trading Game Plan:
It is simple right now. We are keying in on two areas. A resumption of the down move would setup a nice oversold bounce trade at the gap fill area at $190. A low volume bounce to the 50 dma sets up a “dead cat bounce” short setup, which basically is a weak bounce after a hard sell-off. If the short level is hit, I will use inverse ETF SPXU to short SPY. If the long setup is hit, I will use UPRO.
I am still holding GMCR, GWPH and DECK.
NOTE: GMCR and GWPH report earnings on Wednesday. I always exit before earnings.
The Trade Journal results
The Focus List
With the market in flux, there are a number of different types of setups popping up on my scans. The oversold bounce (or rubberband) setup is starting to show up. This setup is versatile because you can play a bounce long, short once the bounce hits resistance or do both.
NOV broke down on heavy volume from a strong trend and within a matter of days broke the 20 dma and is now sitting at the 50 dma. With stochastics extremely oversold at 5 we could see a bounce here. An entry between $80.50-81 with stop at $79 and target at $83.50 is the long setup. A weak volume bounce to $83.50-84 sets it up as a short. With this type of setup we have to pay attention to volume closely. If volume starts to pick up on an up move, it invalidates the short setup.
CAT is a broken stock but could be good for a few points on a bounce. A hammer candle formed right at “round number 100” support, which also is a key level for past bounces. Stop under candle around $99, with target in the $104-105 range.
WBAI nice breakout pullback from bottoming formation. Entry on a little more pullback to the $36-36.50 range. Stop 34. Target 42 and higher.
The Usual Suspects are DECK, TSLA, WYNN, YY and Z. We’ve been watching and trading these stocks and have a good feel for them. I am in DECK. It is a still a good entry. I am not going to give entry on these right now because I need to see how the market is acting to enter these. I will update either by alert or intra-day video.
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.
UA, DECK and TRLA are at or close to entry levels.
SWI, RES and INO have been removed from the breakout list.
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 market has not hurt TSLA, which is a good sign for the stock. I am not trading GOOGL yet, but watching closely for a trade that will setup. FB is nearing breakout gap fill.
Please read the post 23 Laws of the Part Time Swing Trading the Market Speculator Way and How to Anayze Your Swing Trade Results It is important to know these rules if you trade off the Report.
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