Ten (or more) Trading Ideas for Professional Traders
Game Plan - Market following “yields”. Watch 5 and 10y yields. Technician’s waiting for “right shoulder” will be left behind. Watch for start of retracement to test long-term support and confirm recent bottoms, but maintain bullish view until reversals are in.
Campaign - Most “Doji’s” negated. Dow INDU target 8940-9000. 8350 support. DJINET trg= 90. Energy and Commodities breaking out. Nasdaq at 200dEM (1740) and fighting. Support = 1675
Tactical errors in this new phase are more costly than just the dollar amount. The buyers are resilient. Only short opportunities are to sell into a gap up opening. Gaps in either direction present huge opportunities that could make your day. The trade is over by 10:30, sometimes a 2nd trade sets up around 11:15 to 12:30. Other than that, it’s very confusing with a lot of whip-saw fake moves. Friday, profits were due to selling new highs and buying new lows. When trading macro using baskets, do not deploy momentum strategies. Buy on the bid, accumulate and then keep adding once confirmed. Then sell into a breakout, do not add into a breakout. Become the tape. Trade stocks in solid uptrends, such as GS, etc… throw underbids and scalp using size. Try to avoid individual trading of etf’s. Only use etf’s in baskets. And only deploy baskets when APPROPRIATE. Otherwise, be selective and take your trades.
Buy MR at mrkt and accum.
KBW breaking out!
AB / RJF accum core breaking out
SDTH core China stock. Accum at market.
SMI 100% potential.
SPRD short squeeze.
PMI short squeeze
GROW: Accum core
UYG, FAS, IAI: Add to long bskt
SNDA: short
Naz: 1775 ceiling. 200d=1740. Breakout is 1774-1776. 1675 Support.
Inside sigma channel: 1715 – 1775 – 1840
BKX: Bank Index approaching Fib. convergence and 200d EMA. Resistance Range: 45.40 – 45.80 (200d=44). This suggests a blow-off top in the next 1 or 2 trading days.
CRB Index: Confirmed reversal with 1st target of 258-263 (8%)
DJUSFN: Approaching major resistance with heavy upside momentum. Other indices have broken through similar levels. Ideally, pullback to 205 to confirm uptrend.
200d= 237. T/L= 240. Fib=234
DJUSHB: Nice correction to buy into.
Defense Index (DFX): At 200d EMA. Broke above trendline on Friday. Could be a short sector this week.
BTK: Biotech Index might make a run to 740 if the broad market continues to rally. It is lagging so far but March lows way above Nov. lows. So market may be “catching up” to this group. 660 heavy overhead resistance here.
DJUSAF: Showing resilience. Continuation rally after breaking and closing above 200d EMA. Turns consolidation into flag type. Looking for 485 (12%). Is this a proxy on global economic rebound?
DJUSAT: Auto parts makers closing above key resistance and 200d. Look for continuation rally to indicate market’s bullishness.
DJUSCA: Casino index consolidating above 200d. Watch for breakdown as possible indication broad rally may be over. Break below 260 sets up potential short trades in the group.
Limit Orders:
LFC=56 or >57.50, FMCN=7.305 or >7.95, CYOU= 29.35, ADI=20.25, BRCM=18.05, HIMX=2.50, NVDA=9.10, PLXT=2.85, SIMO=3 or >3.70, ACTS=1.80-1.88, AMCN= 5.75, CHL=46.50,CTRP= 30, GSH=23.50, JASO=3.55, MR=24.30, NPD=5.15, STP=14, XING=1.80,MBI=5.75
CHINA:
CPSL= new leg up about to begin, CHINA= 2x bottom monitor for entry around 1.35, ASIA=About to breakout >18.50, CBAK= 3day cons. >200dEMA go long and strong, CPBY=a.m. earnings, EFUT=closing gap 7.75-8.50 unreal growth rates, HMIN= about to breakout. Gotta be long prior to move., SIRF=2.85
SIMO trying to breakout
SVA: monitor closely
FINANCIAL:
ABK=trgt 3.50 buy possible gap down on earnings, BK=30L, ICE= monitor for another leg higher, JPM= 45 trgt, NYX= 30trgt, ORI= 15trgt, RF= buy on wkness,
Disclosure: Author actively trades the above stocks. These are NOT investment recommendations, nor should any of the above be construed as investment advice. The above are excerpts from the authors trading journal. Do your own research and consult a professional if you are not one yourself.
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