Friday, January 30, 2015

The Common Sense Approach to Swing Trading Apple: A Measured Move

One of my favorite swing trade setups is the earnings breakout.  I know, we have established that in post after post.  What you guys really want to know is how does The Market Speculator plan to trade Apple!

I've got your back fellow swing traders.  Trading Apple, and making a profit from it, is like a badge of honor.  Call your significant other up and tell them you traded Regular Therapeutics, and they will fall asleep before you even get to the profit talk.  But Apple, now everybody wants to hear about an Apple trade.

Any time I look to make a swing trade, I search for a stock with a catalyst.  AAPL has that, blowing the roof off earnings two days ago and gapping up on heavy volume.



Price is currently at $118.90, about a dollar away from the all time high.  That is the key level.  The last time AAPL broke out from an old high, back in mid-October, the stock went on a 15 point run in just under a month and a half.

History tends to repeat itself and I would not be surprised to see a similar run once AAPL clears the recent high.  The $120 level is the buypoint.  This entry level provides low risk and high reward, which is the most important of our 23 laws of trading.

So there you have it.  The common sense approach to trading Apple.

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Wednesday, January 28, 2015

Essential Steps for Shorting SPY and The Stock Market

Shorting the stock market is never easy.  However, the market often gives us clues that increase the probability of a successful trade.  Two weeks ago we talked about those clues.


Since then the market made an attempt at remounting the 50 day moving average.  If SPY had held those levels, the short setup would have been invalidated and we would be back to holding a bullish bias.  I did not let go of my short since the market is showing underlying weakness and the remount was far from explosive.



Today we got the failure of that remount with a huge down move.  Over in the Trade Report we are still holding our short position with our target at the 200 day moving average.

This two minute video goes over the SPY short trade.



http://youtu.be/qYlwLMiVqHQ

If you would like to learn more about how I trade, receive my nightly focus list with market analysis,setups and trade alerts, sign up for a 14 day free trial at BullsonWallStreet.com.  

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Monday, January 26, 2015

2 Smart Tips to Enter Pullbacks in Parobolic Breakout Stocks

Often with explosive stocks and leveraged sector ETFs like NUGT, pullbacks off parabolic breakouts can be volatile, and difficult to enter.  So just how do we figure out our entry level?

There are two ways to do it.  The safe route is to wait for a confirmation move.  For instance, a positive candle pattern.  The riskier route is to take a stab once the stock becomes oversold.

When choosing the later, it's best to play it safe with a small position size or tight stop.  Today NUGT presented both options.  It pulled back down to $16.50, which got it to oversold levels, before reversing into what now looks like a positive candle pattern.  This pattern is not valid until the close.

While it may seem counter-intuitive to enter near the highs of the day, this pattern is actually the safer route, assuming it holds to the close.

Remember, in swing trading you must have a game plan. Often times the strategic moves you must make go against what our emotions tell us, so that plan must be in place going into the day.

If you would like to learn more about how I trade, receive my nightly focus list with market analysis,setups and trade alerts, sign up for a 14 day free trial at BullsonWallStreet.com.  

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P.S.  We traded NUGT successfully in the Trade Report and have been stocking it since the December bottom formation.


Sunday, January 25, 2015

20 of your favorite swing trade stocks analyzed

Swing traders, it's that time again!  Every few weeks I ask you what stocks you guys are watching and would like me to analyze.  I do this for four reasons:

  1. I want you to expand your knowledge base, and what better way to do that than by analyzing the stocks you are watching.
  2. I get a feel for market sentiment
  3. I actually find stocks that I missed!  This week two stocks from your requests made it to my list.
  4. You get a feel for how I perceive stocks and the market
Remember, there are many ways to trade a stock.  This analysis is from my perspective and trading style.  If you disagree with my analysis or have an alternate trade strategy, tell me about it in the comments below!

If you would like to learn more about how I trade, receive my nightly focus list with market analysis,setups and trade alerts, sign up for a 14 day free trial at BullsonWallStreet.com.  
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Great stocks guys!  I added IPHI and SCMP to my focus list.

P.S. This week I have some great blogposts coming out, including one that is VERY PERSONAL.  Subscribe below to make sure you get it delivered to your inbox.

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Tuesday, January 20, 2015

How to identify explosive bottom formation breakouts

Every momentum stock starts from a bottom formation breakout.  Back in November we started talking about Gold Miners as a potential bottom formation trade.  

Study this chart carefully and notice the positive volume as gold miners put in a bottom formation, the remount of the 50 dma and successful hold on pullback.  


If you would like to learn more about how I trade, receive my nightly focus list with market analysis,setups and trade alerts, sign up for a 14 day free trial at BullsonWallStreet.com.  

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Friday, January 16, 2015

How to Identify and Trade A Market Short Signal

Swing traders need a basket of "goto" setups that can be applied to different markets.  Two of my favorite are the breakout-remount and the breakout failure.  Mr. Market, aka SPY, offered us a little of both a few days ago with a remount that failed.


Notice in the chart above SPY has remounted the 50 dma, then two days later closed hard below it.  Over at BullsonWallstreet, hat was our signal to get short.  So far so good, with SPY continuing the breakdown toward the 200 day moving average.  That is our target, where we will look to at least take partial profits.

If you would like to learn more about how I trade, receive my nightly focus list with market analysis,setups and trade alerts, sign up for a 14 day free trial at BullsonWallStreet.com.  

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