Trade Ideas November 4, 2014

Today's Swing Trade Ideas

GPRO/Long  (Consumer Cyclical Sector Leisure)   Other than two wicks overlapping each other by just a few pennies, GPRO has formed a bullish island reversal pattern and gapped over the big three.  Closing yesterday at $84.32 sets GPRO up for testing $100 again and possibly moving higher.  As we all know, not all candlestick patterns are guaranteed, follow through is a must.

My entry plan idea:  (Bought yesterday @ $84.28) To add to GPRO above the 50 DMA or a breakout of $85.40
My stop plan idea:    A close below the 50 SMA area

Good Morning,

SPY:   What is a healthy pullback?  Most traders realize that to have a healthy bullish trend we also need healthy pullbacks as well.  So what is a healthy pullback?

SPY:   What is a healthy pullback?  Most traders realize that to have a healthy bullish trend we also need healthy pullbacks as well.  So what is a healthy pullback?  In my opinion and the opinion of many traders, a healthy pullback would be approximately to the 23.6% Fibonacci.  In the case of the SPY, the 23.6% Fibonacci is drawn at $197.50, just a fraction above the 50-day simple moving average ($196.90-ish) on the daily chart.  Friday’s candlestick was a Hanging man  which implies the sellers may try to push price down.  Yesterday's Doji implies indecision, not only from the Hanging man but also from the recent trend.  All of this leads me to believe that there may be a high probability that price pulls back to near the 50-day simple moving average.  And as long as price can stabilize near $196.90-ish, we would have a healthy pullback in a bullish trend.

 IWM:  Just as the SPY printed a Hanging man on Friday after a very impressive bullish run, so did IWM.  Yesterday's candle demonstrated a little more weakness in IWM compared to the SPY.   Yesterday's candle, although a Doji, rather more like a spinning top Doji  (a larger body), did close below Friday's Hanging man demonstrating a bit more selling follow-through.  Just like I explained in the SPY, a 23.6% Fibonacci retracement would be a healthy in a bullish trend.  The 23.6% Fibonacci retracement on IWM would put it near the 200-day simple moving average and the T-Line.  The 23.6% Fibonacci and the 200-day simple moving average, as well as the T-Line, are also very near the downtrend line drawn from July 1 to September 3 then to October 30.  The logical conclusion, in my opinion, is weakness will take us to approximately the 23.6% retracement, which is a healthy pullback in a bullish trend.  Of course, if IWM fails to stabilize near that level, we could see more downside.  As always, price action rules the chart and candlesticks paint a clear picture on what price action and trader attitude is.

VPCO - I don't remember who in the live trading room mentioned VPCO a few days ago, but I would like to say thank you very much!  With a 31.8% profit in the chart so far and it still likes looks like it's moving higher, I owe you one.

 

This Week's Economic Calendar---> Click Here

Members Trade Ideas -  Members Only

In the members area you will find 10-15 trade ideas every day

 

Investing and Trading involves significant financial risk and is not suitable for everyone. No communication or chat sessions should be considered as financial or trading advice. All information is intended for Educational Purposes Only.

Symbols for members only Date  Long/Short Try our Membership, Check out the Trading Room
11-3-14 Long Buy on positive trading
10-30-14 Long Wait for it
10-29-14 Long Buy on positive trading
10-27-14 Long Buy on positive trading
10-24-14 Long Hit target +28%
10-23-14 Long Close on weakness/watch for PBO
10-21-14 Long Buy on positive trading
10-20-14 Long T-Line run/Caution profit taking
10-17-14 Long Caution/follow the candles
10-14-14 Long Close on weakness
10-9-14 Long Close on weakness/watch for PBO
10-2-14 Long Buy on positive trading
9-25-14 Long Buy on positive trading
9-18-14 Long Watch for PBO
9-5-14 Long Buy on positive trading
8-28-14 Long Buy on positive trading
8-14-14 Long Close on Weakness + 35.5%/PBO?
8-13-14 Long Target Hit +29%
7-8-14 Long Caution/think profits

VXX S&P 500 VIX Short Term Futures:  A close below the T-Line ™ implies the bearish short-term swing traders are in control, Yesterday's candle implies bulls are showing up.

Energy Sector: XLE, SX90, ERX  A close above the  T-Line ™  implies the bullish short-term swing traders are in control.  The current candle pattern implies sellers are present.

TLT: A close below the  T-Line ™ implies the bearish short-term swing traders are in control. Yesterday's doji and the last 5 candles implies the buyers may attempt a run to the 20sma.

The information in this email and Blog Post are notes to myself and should be construed as financial or trading advice.

 

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.

Investing and Trading involves significant financial risk and is not suitable for everyone. No communication or chat sessions should be considered as financial or trading advice. All information is intended for Educational Purposes Only.

http://hitandruncandlesticks.com Trading for Profit is not an investment advisory service, nor a registered investment advisor or broker-dealer and does not tell or suggest which securities or currencies customers or subscriber should buy or sell. The analysts and employees or affiliates of Company may hold positions in the stocks, currencies or industries discussed here.

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