03-15-15 Trade Plan

After breaking into no man's land last Friday and seeing a lower high the sellers retained control and pushed prices lower.  The Russell 2000 is where some real strength is being found after buyers supported price above YTD break even, a rising 50 day average, and $120 round number support.  We now have a higher low to reference at that level and it wouldn't take much to see new highs to continue the daily uptrend.  The potential for the NASDAQ to pass the torch to the Russell and bring out new leadership is present right now so that is something I'll be watching for swing trading.

NASDAQ still has some room below before testing break even for the year and we don't have any new swing lows to look at for right now as we do in the Russell.  $105 is a nice round number I'll be watching for buyers to support.  The longer intraday trends (130m, 65m) were broken so that leaves me focusing more on a daily chart reversal to be played on a shorter term intraday trend (30m, 15m) if buyers get some force behind them.  Other than something like that happening I will continue to focus on day trading the volatility present in the indices.


The S&P is the worst looking index right now in my opinion, however the leading indices are what is important when looking for short term reversals to continue the uptrend.  Right now the leader is looking like the Russell 2000 but the NASDAQ has been the leader for a while, so I will be watching both closely.  I'm not positioning myself for a reversal that hasn't happened yet, if buyers take control by breaking the lower highs and lows on the 30 minute time frame then I will look for stocks driving that reversal with good setups (aka good risk definition in a strong uptrend) and take it from there.  Other than that I'm day trading and whether sellers keep control and push lower or buyers take control I'll be day trading both.  If buyers take control I will also look to take long side swing trades.

Keeping the watch list updated for the scenario described above.  Some of the stocks still have more work to do but they are in a position for buyers to easily take control.  Meaning the daily chart already has higher highs and lows, but I am just waiting on the reversal similar to the NASDAQ.  Some of those include AAPL, GOOGL, CRM, & V.

Others just look ready to go like AKAM, ADBE, FSLR, & REGN.  How aggressive I am with swing entries depends entirely on the action I see in the indices and how the stocks react to it.  That's all I got for this week, again no watchlist analysis post this weekend as we are still in a grey area waiting on this potential swing low.  Thanks for reading

-Michael