02-08-15 Trade Plan

Markets spent another week trying to go positive on the year and we continue to be in this $100-$105 NASDAQ range.  Bulls have done a good job holding price above the break down area at $100 but have yet to get an intraday trend going to leave the range.  Note we never saw any lower high below $100, so there was never a reason to look for an intraday down trend in the indices.  The Russell showed some strength this week and right now it is bumping against the $120 resistance/YTD break even.  I mentioned last week I need to see at least two indices get an intraday trend going to really start looking for bulls to move in and that is still the case.


I made some chart notes to better visualize where we are now with intraday price action: Russell 2000 NASDAQ 100.  Bottom line there is that bulls have a chance to show strength by holding the previous supply area and getting into positive territory with a good swing point to potentially start an intraday trend.  Under that supply area it's back to being patient and waiting for some kind of break away.  However the weekly charts on both NASDAQ and Russell (even the S&P) are very constructive for the buyers, so everything longer term is set up in favor for bulls.  We just need to see an intraday trend sustain.

The watch list this week has a bit more long side names.  Long names are gap up continuation trades and stocks showing relative strength.  Short list is just some weaker names just in case.  For my own trading I've been doing a bit of both while we wait on resolution in the indices.  BABA was/is a nice short side trade and AMZN has been a great gap and go trade.  I've been keeping it light and taking good setups long or short as they come, trying to be in and out quickly 1-5 days.

That's it for this week but I wanted to run something past you all.  I've been thinking about putting out a second post each weekend that focuses specifically on the watch list.  Best looking setups or anything that could use further explanation would be covered.  Maybe even ETFs like bonds, gold, oil, etc.  It wouldn't be long like this one but just quick discussions with some charts.  Index and big picture talk would stay here.  What do you all think?  Would that be something you want to see?  Use the comments here or just tweet me what you think and if there is enough interest I'll put one out as soon as tomorrow.  Even just send a like or favorite through stocktwits/twitter and I'll take that as a yes vote

02-08-15 Watchlist Analysis - link here

Thanks for reading,
-Michael