Quick Summary:
SPY short entry at $195-196. Focus list stocks near entry: BIDU, AIRM, NFLX, FB, ZU, YELP, GOOGL, UA, ISRG, WUBA, ESNT. New addition BMRN. Entered SPY today, still holding TWTR, AAPL and NOV.
Video Analysis (4 minutes):
The intra-day video goes over the SPY trade, current trades and focus list stocks.
Key SPY Pivot Levels: 199 : recent old high, 195.43: 50 dma, 190 gap fill and support level
Under the Hood and Trading Game Plan:
SPY moved right into our short entry level today, on low volume and with breadth continuing to confirm a weak bounce. Stochastics have hit oversold levels, though still not extreme. For extreme levels we want to see both of them over 90. Presently the lines are at 89 and 81. We also have a gap fill in the $196-196.50 range.
For that reason, I only took a half position with my SPY trade today. I will consider an other short entry if price floats into that $196-196.50.
A number of focus list stocks are near entry, but I will be very selective with the anticipated pullback of these overbought conditions.
Current Trades
I entered SPY short today with a half position size. I am still holding TWTR and AAPL, both bouncing strong today. AAPL is only 1.5 points from target level.
Yesterday’s short entry, NOV, broke down below the 50 day moving average. This is what we wanted with the anticipatory short setup. We now wait for follow through.
The Trade Journal results
The Focus List
For annotated charts with entries, see the report for Monday.
The focus list was stagnant today with small moves. All are near entry levels, though most require some pullback. Previous analysis of each of these remains the same. BIDU, AIRM, NFLX, FB, ZU, YELP, GOOGL, UA, ISRG, WUBA, ESNT.
New addition:
BMRN broke out of a major long term trading range. Within this range price and volume action are constructive and show accumulation. Entry on pullback between $66.30-67.20. Due to the market being overbought, I prefer to enter toward the bottom of this range. Stop around $65. Initial target at $72.50.
Short Setups:
While the short list is still viable, except YELP, my focus now is shorting SPY via SPXU.
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.
No major moves in the market leaders. For the market to move and regain it’s uptrend, I’d like to see some breakouts in a few of these.
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). dddd
