12-28-14 Trade Plan

Looks like this will be the last trade plan of the year, hope everyone had happy holidays to carry into the new year.  Markets are still holding up well hanging onto higher highs and lows.  It's still not clear which intraday trend is forming but right now it's looking like the 30m.  As long as we get the relevant swing points though it doesn't really matter.  I'll be watching for higher highs and lows to hold along the 30m trend this week as a benchmark in the Russell and NASDAQ.  Russell 2000 is still my favorite index heading into the new year and more Russell correlated stocks are making their way into the watch list.

Also we get new YTD break even levels on the first of the year so to me that's a fresh start for performance benchmarks.  I wrote a post on how I track/use it in the education page if you are interested in that.


We have all the indices nearing highs with the Russell being the best performer.  At this point in the Russell it's not about holding the $118 level anymore, it's about holding the intraday trend to get to new highs.  Same with NASDAQ, it's not about holding the gap up low anymore it's about holding the 30m trend swing points.  If this continues then we should stay in a good environment for stocks triggering and/or holding intraday trends.  Don't pay too much attention to those wedges I have drawn on the SPY & QQQ.  I only have them drawn because they do exist but I think following leading performance in the indices and stocks hold much more weight than a chart pattern.  Even if they were to break to the downside I would still need to see 12-17 low break to damage the up trend.

Like I was saying earlier some more Russell correlated stocks have made their way into the watch list.  Examples: AKAM, BBRY, CRM, LNKD, FEYE, TASR.  Not all new but just listing them out.  Some of the better looking potential fresh setups include AAPL, AKAM, LNKD, FEYE, NKE, AAL, & DAL.

With another shortened week ahead and new YTD break even levels coming this week, I'm not sure how active I will be but if there are some good entries "screaming" at me I'll take them (kind of like LNKD is doing right now).  Just be aware market could be slow and performance benchmarks reset on Friday.  Thanks for reading everyone and I wish you all a happy new year.  See you in 2015