Today’s Swing Trade Idea

TSEM Long; (Technology Sector so My Conductors) From our original featured trade idea date we’ve already seen a 20% increase, the recent pullback and a bullish piercing candle followed by a close over the T-Line and the 20 day simple moving average yesterday is now set up for another 15 to 20% move

My entry plan idea: Add to or buy on positive trading above the 20 day simple moving average

My stop plan: For the time being I will use a T-Line stop and adjust as we move forward

Good Morning,
SPY: It was not at all unexpected to see a relief rally yesterday. I have talked about it with our members as a very possible scenario. The big question today is: Will we see bullish follow-through over yesterday’s high? Without bullish follow-through for what I consider a bit more important, can the bulls hold their ground with the August 8 lows? If they can, then we will see a bottom built over the next three or four days. One of the scenarios would be the August low being the low then a high followed by a higher low and a breakout of the recent high. That would be the clue that the bears are starting to lay down.

Yesterday I gave important numbers that the sellers want to control. Today we see the important numbers that the buyers want to control.

$191.57 August low
$195.50
$196.90

XLE – the SPDR Select Energy sector ETF, found support from the May high and formed a Bullish Engulf yesterday. This is a sector we will be watching to trade long at the right time.

Accumulation, bull trend, distribution, bearish trend, accumulation and the cycle starts over. In each of these cycles, you will see countertrends, profit taking and choppiness with buyers and sellers fighting to take control.

Now that price has moved down below the 50-day simple moving average, the T-Line has now broken below the 20-day simple moving average and the 34-day exponential moving average, the sellers have taken control with the bearish trend. For a while we’re going to see countertrend rallies, profit taking and choppiness, and many times we get caught in the middle.

Stay patient and cautious and watch for accumulation, and don’t let simple relief rallies take advantage of you. You take control of the relief rallies until true accumulation and bottoming signals along with patterns are formed.

IWM: Yesterday’s trading painted a hammer and a three-cent difference in Friday’s and Monday’s low, very close to a tweezer bottom. “Good job, Bulls.” I will be more of a believer if the bulls can cross the T-Line fence and graze on the other side. If you take a look at your IWM daily chart, you can see that the lower highs are still intact; although yesterday was a nice hammer day, the candle is nowhere near taking on the most recent swing high of $114.31.

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VXX S&P 500 VIX Short Term Futures: Aclose above theT-Line ™ implies the bullish short-term swing traders are in control, Yesterday’s candle implies consolidation

USO United States Oil Fund: Aclose below the T-Line ™ implies the bearish short-term swing traders are in control. Yesterday’s morning star on the 200 day simple moving average suggest a little bit of support and possible bounce from here

GDX Gold Miners ETF: Aclose Below the T-Line ™ implies the Bearish short-term swing traders are in control. More indecision

TLT: Aclose Below the T-Line ™ implies the Bearish short-term swing traders are in control. Yesterday’s candle indicates indecision, inside day.

The above are just my thoughts to myself just thought I would share with everyone.

Investing and Trading involves significant financial risk. No communication should be construed as financial or trading advice. All information provided is for Educational Purposes Only.

— Rick

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Keep the inverse ETF’s close by and watch them closely they produce good money, fast
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