03-22-15 Trade Plan

With the Russell 2000 leading, we saw the daily chart higher low supported across the indices and that led to a nice rally.  Last week I talked about how the longer intraday trends (130m, 65m) were broken but still had a very nice daily chart up trend that buyers could support.  Since the longer intraday trends couldn't be used to track price efficiently, it made sense if buyers were going to continue the daily up trend it would be a shorter term trend (30m, 15m) to carry the markets higher and that's what we saw.

Maybe the fed had something to do with it or maybe that's just what price wanted to do anyway.  At the end of the day, back testing a daily chart I couldn't tell you where a fed meeting was but I can tell you the trend and the price.  Same thing with earnings announcements conveniently placed in a nice uptrend, "big upside surprise" they call it...


If you look at the 30m trend on NASDAQ, you can see we are in the same position the daily chart was (with the previous higher low being very far away).  The last low was put in at $106, that means as it stands now sellers would have to take out that low just to end the intraday trend.  Even if that were to happen, sellers would then have to take out the low on the daily chart, then take it negative on the year to maybe start a downtrend.  Basically I'm saying the path of least resistance is still up without question and buyers continue to have a lot of room to work with, now with a new daily chart low to reference.

The watch list grew this week but only a few of them are what I would look at as a fresh setup.  We can go over those in the watch list analysis post.  Basically the theme is the same as the index, look for daily charts in up trends and trade the juice coming from quick intraday trends (just like the index is doing).  Leading stocks give the index opportunity to set the stage, then good setups form and trigger so long as, or even causing the index to hold up.  This is true for my style swing trading correlated stocks.

So that's all I got, let's move into looking at some of the names on the list.  Thanks for reading

03-22-15 Watchlist Analysis - Link Here

-Michael