Quick Summary:
SPY broadening formation. Intra-day video highlights stocks. New additions DGLY and JRJC. Holding SPXU and GWPH.
Video Analysis (3 minutes):
Today’s intra-day video about 50 minutes prior to close with trading ideas in focus list stocks.
Key SPY Pivot Levels: Round number $200, Old high 199, 50 dam 197.01, 197.50 and $196.50 gap fill and support levels
Under the Hood and Trading Game Plan:
We’ve talked much about the SPY formation over the past two weeks, and now we are starting to see a range forming at these new highs forming a “broadening formation” at the highs. Broadening formations feature higher highs and higher lows within a range. Near a top they are bearish, near bottoms they are bullish. Many failed breakouts come out of this pattern. Another sign of a correction or pullback? We shall see.
The current game plan is to manage the SPY short position. I continue to look for long setups on momo stocks, but will not chase. B
Current Trades
I am still holding SPY short via SPXU and GWPH.
GWPH broke down below the moving averages, and is forming a range here. My stop has been moved below this range, in anticipation of remount of the moving averages. If looking to enter, a remount would give a good entry signal.
The Trade Results Journal/Spreadsheet is up to date.
The Focus List
Finviz link to easily follow the entire focus list. Most positions entry charts remain as annotated earlier in the week.
Focus list stock SCTY bounced today and can be entered on slight weakness above remounted candle (see video). MNST, AAPL, PANW, LDRH and BITA remain within trading ranges.
New Addition:
China is heating up again and JRJC bounced on oversold conditions after a pullback. Entry in the $8.25-9.25 range, with a stop under 8 and target around $12 offers good reward to risk.
DGLY is very volatile right now and only good for those that can watch closely. Two ways to play this:
1) Entry at current level with stop under breakout bar. Using tighter stop gives low risk, high reward with a target in the $30-32 range.
2) Wait for deeper pullback on gapfill.
Short Setups:
My focus now is shorting SPY via SPXU
Market Leaders
Market leaders were a mixed bag today, which is expected when SPY closes at basically break even. GOOGL, FB, NFLX, TSLA look healthy and ripe for entries on 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.
New subscribers and trial members please leave me any feedback/comments in the comments, via email (singhjd1@aol.com) or twitter (twitter.com/PaulJSingh).
