SPY setup same. Entered DUG today and still holding CSIQ, LNKD, WOOF and FB. New additions to focus list DAL (short) and HCLP. GOOGL setting up.
Key Pivot Levels: 196.48: new high resistance 189.76: 50 day moving average 181.31: recent low 181-184:
Under the Hood:
Nothing changed today in SPY since Sunday night’s analysis. The plan remains the same.
Trading Game Plan:
Possible SPY short.
Focus list stocks can be played according to setup without regard for the market.
I entered DUG today at $36.19. Target is $39 ad stop is around $35. This gives close to a 3:1 reward to risk ratio. This is an oversold bounce or “rubber band” setup.
I am still holding FB, WOOF, LNKD and CSIQ (half position after taking profits). All are above entry levels.
Here is the Trade Journal with current open and past closed positions. The spreadsheet is completely updated.
The Focus List
HCLP comes from the hot industrial metals sector. It has reached new highs after recently correcting at the 20 dma, and now seems to be forming a range just above the old high. I would like to see how it reacts here over the coming days and enter around $54.
I am starting to see some recent high flyers that are beginning to show some distributive volume as price pulls back. I am putting them on a bearish “shorts” focus list. These are not necessarily shorts yet, but it is worth watching to see if they resume trend or start to breakdown.
DAL, and other airline stocks like LUV are good examples. Take a look at how hard the pullback was, on heavy volume. Now we have a bearish flag forming. My initial thought was to watch these stocks because often it’s just an over reaction to coming off highs, but I’m thinking this might be worth a speculative early entry on strength. Short in the $39.50-40 range, with stop at $41 and target at $36 (the intital breakout in late April) offers good reward to risk.
The rest of the focus list remains the same. All stocks moved within ranges and are still near enough to entry points to remain on the list. Use this link to monitor the focus list tomorrow: http://finviz.com/screener.ashx?v=211&ta=0&t=dal,%20hclp,%20NFLX,EQM,FB,FSLR,GMCR,LNKD,RDNT,TSLA,TWTR,YELP,YY,DIG
GOOGL is hitting that level we have been watching for breakout around $575. If it pulls back back a bit it will be a candidate for a pre-breakout play.
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