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.
Focus list addition FSLR from hot solar sector. IWM leads indexes. Entered FB today. Focus list for tomorrow: FSLR,YELP, WOOF, FB, LNKD, TOL and AAPL.
Key Pivot Levels: 196.05: new high resistance 188.29: 50 day moving average 181.31: recent low 181-184: plenty of buying in this range.
Under the Hood:
SPY drifted up a little today. Nothing that alters the game plan.
Let’s revisit the comparison of SPY, QQQ and IWM. SPY continues to lag while IWM has taken a big lead. That’s why IWM is now in our focus list. The former laggard is becoming more and more bullish, and really the only good trading vehicle among the three right now.
The fact that IWM has taken the lead is overall good for the market. If we want a bullish trending market, optimal gains come when the small, speculative stuff act well. If I’m long a trend, I love it when stocks like WOOF start entering into the focus list.
Trading Game Plan:
In the more immediate term, we could see a pullback to strong support at $190. That is an entry area. I will take a low risk short entry if we near $196 and stochastics become overbought again. This would have to play out over a few days, since it will take time to get back to overbought conditions. So do not expect a short setup tomorrow or even Wednesday.
Focus list stocks can be played according to setup without regard for the market.
I am still holding a half position in YELP, as it holds the breakout bar and 200 dma.
I am still holding WOOF, which broke out strong early in the day but pulled back by mid-day.
I entered FB today, 400 shares at an average price of $64.42. The stop is under the recent breakout bar at $62.90 and initial target is $67.50, though it has room to go higher. The concern here is a pullback would be deeper to the initial breakout at $61-62. The potential for a move to the old high at $72 outweighs the concern. Although the initial target is only 2:1, I am looking at the secondary target potential at $72 in making this trade.
An alert was sent for this trade. If you did not receive the alert, first check your spam filter and only then contact firstname.lastname@example.org.
Please note that I am delaying updating the spreadsheet to at least close or sometimes a day or two later. I do not want non-members to be able to use it for alerts. You will have the necessary info from alerts and the Trade Report.
Here is the Trade Journal with current open and past closed positions (FB is not on the spreadsheet, nor is the partial YELP exit).
The Focus List
TSLA, EMES, IWM, GS and GMCR all made big moves and require more than a one day pullback for entry. For now they are off the immediate focus list. Those of you that are in these trades, make sure to stick to your trading plan going into the trade. The “let it ride” portion of these trades is available, where you set your stop up to entry
Stocks in play for tomorrow are YELP, WOOF, FB, LNKD, TOL and AAPL. See the previous two reports for strategy.
Solar stocks in the watchlist were on fire today, and the sector is full of stocks with good volume patterns so I am adding one to the watchlist. There are plenty to choose from: CSIQ, FSLR, SPWR, SCTY, TSL, JASO. I am going to monitor all of them, but for the focus list here it’s FSLR on weakness. The stop is under the 50 dma with a target around $73-75.
These are stocks that I always watch, though they might not be in my tradeable watchlist, nor are they actually always leading the market.
GMCR broke slightly above the trading range, so for now the range trade is off the table. NFLX gapped up out of a range, which would normally make it a focus list candidate. However, overhead resistance is close by so no go.
Sector and International ETFs
Every solar stock in Worden was in the green today. It doesn’t get much better than this sector chart. Take a look at all the big green volume bars. Plenty of underlying accumulation that should propel the sector higher.
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