SPY analysis at highs. Likely short half position on a weak move above $199. Focus list entries are few, as most are extended. Be wary of market pullback and be patient for setups. New focus list addition JEC. Possible short with market leaders near resistance.
Video Analysis (6 minutes):
Today’s intra-day analysis of SPY and the focus list. The analysis in the video still applies. We talk about being patient and waiting for good setups. This is not the time to chase.
Key SPY Pivot Levels: Old high 190, 50 dma 195.60, 190 gap fill and support level
Under the Hood and Trading Game Plan:
SPY is right at resistance. Tomorrow I will look to short strength, especially if there is a weak gap open. Again, this is a feeler position and I am only using half size. If something changes I will let you know in the alert.
As noted in the video, often you have a weak break to new highs before pulling back. This “fake out” tricks those who are chasing after seeing resistance clear.
*Trading is more than stock picking and being right. A good trader must be strategic with her game plan and think of the moves that our coming next. You can think of these feelers or stabs as pawns in chess. You use them to glean information and allow yourself to lose a few.*
My current game plan is to look to short around SPY above $199 via SPXU. Other than that I remain patient and will wait for pullbacks for entry in longs. A market pullback would provide for some good setup entries early next week.
I am still holding TWTR.
The Trade Journal
The Focus List
Most of the focus list is extended. These are the 3 focus list stocks I am looking at for possible entry tomorrow.
BIDU on pullback into the $214-216 range. The stop is tough here because the pullback could be deeper if the market corrects. Ideally you want your stop under the range at $209-210. If we do that and have a target set at $225 we still get 2:1. The old high at $230 gives 3:1.
With the risk of being taken out on a market pullback, a good strategy is to use half position sizes for all of these setups.
Deck has formed a range toward the top of the breakout. Entry on weakness around $92. Stop at $90.50 with target at $95.
Z pullback around $136-137. Target $150-160. Stop again is tough. The two levels are just under the $136 moving average or the bottom of the range at $130.
Engineering/Construction sector is picking up. Both JEC and CBI have similar setups. JEC has remounted the 50 dma on strong volume. It looks like a bottom could be in place. Entry here with stop under today’s bar at around $52.25 with an initial target around $56-57.
My focus now is shorting SPY via SPXU.
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 leaders are extended, save Z. I may use a few of these to short near resistance like NFLX or TSLA if I sense there will be a big market pullback.
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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