Stock Specific Market Continues | Trading Game Plan May 29

The worst scenario for traders is market apathy. We are pretty close to that right now.

We don’t make the stock market, we trade it. We hop on the back of order flow.

If we weren’t trading near all-time highs, the discussion would be about a 4 month trading range.

For some reason the historical level makes it less obvious. I am not an investor, I don’t care a bout setting new records each week in the indices.

I want price action I can sink my teeth into for more than one day. This tape is driving a lot of traders batty.

Stock Specific Market as indecision remains…

We are not in a tape that will correct sloppy trading. I actually feel bad for a new trader right now. There is opportunity but you really need to work for it.

A stock specific market means you should not be relying on market indices or internals, there isn’t much of a bias to give you conviction from the big picture. I am not saying the long-term trend is not obvious. It is. But we ar trading day-to-day and there simply isn’t follow-through.

Be picky and let everything else go.

Day Trading Game Plan: The SPY

SPY inside day close above resistance of $212. The close doesn’t mean much above the resistance as volume was putrid on an inside day. Break out mode.

Stocks to Trade |Friday May 28, 2015

Pete’s Notes:

  • A ton of inside days today.
  • Indices still at historic levels with no sign of sellers but I have more short-sale set ups.

Interesting Chart Lessons:

  • SNDK Sandisk: We have been stalking this one for a while. Finally broke out for a nice two day trend. Important to keep these types of trades on your watch list.

sndk break ut

Earnings in play today > 1M avg shares:

Bullish Ideas ATR/Volume/Price: YOKU, CTRP, HLF, SWKS, NFLX, TSLA, GS, UNH (122 RESISTANCE)

Bearish Ideas ATR/Volume/Price: kors, gmcr, wynn, rrc, ual, qihu, apa,

Weak Stock Weak Close: cenx, chk, cnx, swn

Strong Stock Weak Close:

Weak Stock Strong Close: ddd, tck

Strong Stock Strong Close: EBAY, FEYE, LLY, YOKU

20 day Breakdown:

20 Day Breakout: BSX, FEYE, GPRO, HOV, JCI, MXIM

2x Normal Volume: DDD, KORS, ANF, JCI, TMUS, MRVL,

Watch List Longs: ADM, BMY, AET, COF, ABT, MS, HON, SBUX, ADBE JNPR, EBAY, AKAM

Watch List Short:kss, bby, xom, trv, ual, luv, ntap, glw

Inside days: GS, JNPR, C, CMCSK, AFL, FDX, TIF, COH, LUV, KR, JWN, VRSN, INTU, YHOO, UNH, AXP, AAPL, DIS, EMC, AMZN, LOW, BHI


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Leave a Reply 4 comments

Passion4Trading Reply

Pete– SPY 212 is NOT a significant level of “resistance”. It did indeed become significant on 5/4/15…was finally breached on 5/14/15 after multiple failure days…had price sustain above for 6 straight trading dsys before being tested and failing to act as “what was resistance becomes support” on Tuesday of this week… yet recaptured with little difficulty on Wednesday…but failed at NEXT LEVEL OF RESISTANCE which was TOTAL GAPFILL to exact penny at 212.98 (which now is new daily pivot resistance. At that point–coming into yesterday the key support of 211.60 was very significant (easily seen on 15m chart) which represented the max distance sellers were able to briely force price back below 212….which price tested within .03 and reversed…but failed at gapfill 212.60ish attempts.

We can clearly and confdently say 212 is NO LONGER A LEVEL because of the NUMEROUS candles on MULTIPLE TFs that have cut thru this level now….above AND below…with NO SIGNIFICANT REACTION at this level since early May.

    Pete Renzulli Reply

    Hi Lou thank you for your opinion
    that is what makes trading so great and interesting.
    We can be looking at the same price action but have different opinions.

Passion4Trading Reply

I had asked a few days ago what leads YOU to believe 212 is significant as “resistance”.

I think its very important as someone who is offering a service — both free and paid content–that u remain as transparent as possible.

    Pete Renzulli Reply

    Hi Lou
    the SPY has hit $212 7 times since February and has not been able to hold above that level with any significant price action and volume.
    That is why I see it as significant.

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