09-07-14 Trade Plan

All we got this week in the indices was some chop within the up trends on the daily/130m time frames.  While this chop is taking place we are seeing some new stocks setting up and some old stocks falling out, which is exactly what you want to see for some trend continuation.  We still haven't seen any weakness in the indices and with Friday's low I think we have a defined area that if broken will show weakness.

Two notable names this week that saw some heavy selling, both huge winners this year.  GILD and AAPL.  This is why you have to use your stops in relevant areas to get you out when swing lows start breaking.  Both of these were in 30 minute up trends and holding every single swing low along the way, the signal to get out of the way for me was when the swing low couldn't hold.  Simple as that.  All you need is relevant price points and you can make quick effective decisions.


With all the chop we saw last week the 30m trends aren't holding anymore.  But the 130m/65m time frames are.  I am just going to be watching the 130m trend to hold since it holds the most relevance in making a trend that can hold for a long time.  Remember during the reversal early August I was talking about how the goal of the bulls is to get back in a 130m/65m trend and ride it out as long as possible and they are just using the 30m trend to get there.  Well we see that happening now, the chop is transitioning into a new higher time frame trend that can last a lot longer than a 30m/15m time frame can.  So that is why I'm watching the 130m trend to hold.

Here's the watch list for this week.  You'll see different stocks finally this time as new setups are starting to emerge and old setups are dropping off.  As for what I'm trading I'm still going to be sticking with the highest quality moves and the most clear swing points presented which is why some of these names haven't left the list in weeks.

That's about all I got this week, pretty straight forward.  Looking for indices to hold a key trend that can last a long time and looking for stocks to trigger based on the bullish trend in the indices.  Thanks for reading

Trade well,
-Michael