Quick Summary:
Today’s video is on the TWTR trade and why we are focused on earnings breakouts. SPY short and long setups remain in play. Focus list made up of only earnings breakouts. Waiting for either oversold bounce or short setup to emerge in market, which will spill over to many individual stocks. Exited GMCR and GWPH. Entered and exited YY. Entered WYNN and TWTR.
Video Analysis (4 minutes):
Today I review the TWTR trade entry and why I am mostly trading earnings breakouts in this market.
An intra-day video was sent via alert earlier today. Most of it still applies.
The Market
Key SPY Pivot Levels: 199 : recent old high, 195.17: 50 dma, 190 gap fill and support level
Under the Hood and Trading Game Plan:
SPY did not hold yesterday’s gain, but remains within what could be a new range forming. We continue to look to short around $195 and go long around $190, while placing close attention to the volume patterns that accompany price movement.
IWM held up better than SPY today. As with SPY, I am looking to short on a low volume bounce and enter on a down move to around $108. Notice how the IWM has bounced in the past at this level (arrows on chart).
Current Trades
A lot more action today than the past week. I exited GWPH (small gain) and GMCR (small loss) due to earnings tomorrow. I entered YY while completely forgetting earnings are tomorrow, and exited with a small 1 point gain. I entered both WYNN and TWTR (the intra-day video talks about WYNN and the new video talks about TWTR). Along with DECK (which was strong today), all three current trades are earnings breakouts. The reason is the earnings *catalyst* provides the stocks some mojo that helps it hold up against a short term market that wants to take good stocks down with it.
The Trade Journal results
The Focus List
For now I only have the catalyst driven breakouts on the focus list.
COH is a new entry to the list. It gapped up to the top of a range on strong earnings. I like out on pullback into the gap area. EGHT, LPNT, SKX, UA, ISRG and BIDU are all near entry level on slight pullbacks.
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.
PCLN pulled back nicely today. GS has pulled back hard to the 50 dma and old cup and handle breakout support. Z reports today so we will watch it closely tomorrow.
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.
New subscribers and trial members please leave me any feedback/comments in the comments, via email (singhjd1@aol.com) or twitter (twitter.com/PaulJSingh).
