The third trade in our “live trades” series reveals how I trade the rubber band oversold bounce setup.

It’s a fun setup. It’s a profitable setup. It’s also a commonly mistraded setup.

There are key mistakes traders are making when trying to catch oversold bounces; in today’s video I reveal exactly how to trade the rubber band setup profitably in 4 easy steps that focus on:

1. Extreme oversold levels
2. Key entry signals
3. Volume
4. Exit strategy

This is a live trade alerted to Swing Trade Report members seconds after entry. We have taken partial profits and moved our stops up to lock in big gains.  Once the “lotto” position is complete, I’ll update with another video.

Remember, our example is another in my series of live trade videos which makes it must watch: you’ll get into my head and see exactly how we plan and manage the trade as it develops. I’ll be back with another video on the exit.

This video is the third in the “Live” trading series.

Check out the first video to understand how $BRZU made our watchlist and the second video highlighting the gap down reversal trade in $NFLX. .

Remember, members of the swing service get all of these trade alerts intraday in real time.

This swing trading service is great for those that work and can’t monitor the computer all day. We have in-depth nightly reports on the game plan for the day/week, and all stock picks that I trade will be alerted and emailed to you.

Check out the Swing Service HERE

Follow me, Paul Singh AKA “TheMarketSpeculator” on Twitter or email me at SinghJD1@aol.com.

The post How to Swing Trade the Rubber Band Bounce Setup: UCO LIVE TRADE appeared first on Bulls on Wall Street.

Blowout earnings provides this setup with a direct catalyst that should get this stock to round number $700. If the stock then breakouts out over $700 it could be off to the races.

Note: I entered this position this morning around $686 and sent an alert out to members.

Come check out our FREE TRIAL for our Part Time Traders service. This service is great for those that work and cant monitor the computer all day. We have indepth nightly reports on the gameplan for the day/week and all stock picks that I trade will be alerted and emailed to you.

https://bullsonwallstreet.com/swing-trading/

Follow me, Paul Singh AKA “TheMarketSpeculator” on twitter or email me at SinghJD1@aol.com

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There are 4 elements to the breakout breakaway gap setup:

1) a breakout from a developed range

2) a big gap from that range

3) high volume relative to previous volume (at least 2-3 average volume)

4) the breakout is on tangible news such as earnings, rather than rumors and speculation.

In this video we go over $GOOGL to illustrate the power of the breakout breakaway gap setup.

Now that you have watched the video, find some breakout breakaway gap examples in momentum stocks that made explosive moves and share them in the comments below.

This is part 3 in the trading breakouts series  “The only setup you need to know”.

Part 1: The breakout pullback setup

Part 2: The breakout-remount setup

My focus list is, market analysis and trade alerts are all featured in the Market Speculator Part-Time Swing Trade Report.  If you would like to receive the swing trade report and alerts, sign up for the free trial.  Follow me on twitter or email me at SinghJD1@aol.com

The post Trading Breakouts: The Breakaway Gap Setup appeared first on Bulls on Wall Street.

SPY continues back and forth trading.  Focus list stocks near entry.  Today’s entry DGLY.  Current position GWPH holding remount of moving average. PCLN and Z removed from market leaders.

Video Analysis (4 minutes):

Intra-day analysis of focus list stocks and trade entry DGLY.

Key SPY Pivot Levels: Round number $200, Old high 199,  50 dam 197.27, 197.50 and $196.50 gap fill and support levels

Under the Hood and Trading Game Plan:

More back and forth as SPY closed again above $200.  Our analysis has not changed as we wait for a break of $200 and $199.  Notice that while SPY has not pulled back but consolidated, a number of stocks have pulled back.  Even if we don’t get the pullback, this consolidation could still be beneficial in creating setups.

The current game plan is to manage the SPY short position.  I continue to look for long setups on momo stocks, but will not chase.

Current Trades

I am still holding SPY short via SPXU, and long SCTY and GWPH.

I entered $DGLY today on pullback toward the bottom of the breakout bar as todays’ gap up looked to start a new move.  Stop is below the trading range with an initial target at $27.50 and next at $32.

GWPH closed strongly above the moving average today.  This is the type of close I have been waiting for and may consider adding to the position.

The Trade Results Journal/Spreadsheet is up to date.

The Focus List

Finviz link to easily follow the entire focus list.  Most positions entry charts remain as annotated earlier in the week.

These focus list stocks are all near previously discussed entry levels (video and reports).

Short Setups:

My focus now is shorting SPY via SPXU

Market Leaders

Z and PCLN have been removed from market leaders.  While they may not necessarily be broken, I don’t feel they give me a clue to their respective industry/sector as they once did.

Please read the post 23 Laws of the Part Time Swing Trading the Market Speculator Way and How to Analyze Your Swing Trade Results  It is important to know these rules if you trade off the Report.

New subscribers and trial members please leave me any feedback/comments in the comments, via email (singhjd1@aol.com) or twitter (twitter.com/PaulJSingh).

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SPY does not follow through yet.  Intra-day video.  Holding $SPXU, $GWPH and $SCTY.  New focus list additions $TSLA and $YELP.  $DGLY, $BLOX, $SCTY, $BIDU, $WFM and $JRJC near entry levels.

Video Analysis (4 minutes):

Intra-day analysis of SPY and focus list stocks.

Key SPY Pivot Levels: Round number $200, Old high 199,  50 dam 197.27, 197.50 and $196.50 gap fill and support levels

Under the Hood and Trading Game Plan:

After yesterday’s break of $200, early morning we got a break below the old $199 high, only to recover mid-day and close above $200.  This market is not going down without a fight.  The tail that printed today is not on strong volume, which lessons the probability of a sustained move off the tail.

The current game plan is to manage the SPY short position.  I continue to look for long setups on momo stocks, but will not chase.

Current Trades

I am still holding SPY short via SPXU, SCTY and GWPH.

The Trade Results Journal/Spreadsheet is up to date.

The Focus List

Finviz link to easily follow the entire focus list.  Most positions entry charts remain as annotated earlier in the week.

DGLY, BLOX, SCTY, BIDU, WFM and JRJC all near entry levels and discussed in recent reports or videos.

New Addition:

YELP is back in play on pullback to recent high.  Entry $80-81.50.  Stop around $79.  Target $85.

TSLA has formed a 20 point trading range post breakout to new highs.  Entry toward bottom with target at top provides good reward to risk.  An entry in the $570-574 range, with a target at $290 offers 3-4:1 reward to risk.

Short Setups:

My focus now is shorting SPY via SPXU

Market Leaders

GMCR bounced strong after a multi-day pullback.  GOOGL printed a hammer/tail after yesterday’s big drop.  CAT gapped down hard.  The rest bounced within trading ranges.

Please read the post 23 Laws of the Part Time Swing Trading the Market Speculator Way and How to Analyze Your Swing Trade Results  It is important to know these rules if you trade off the Report.

New subscribers and trial members please leave me any feedback/comments in the comments, via email (singhjd1@aol.com) or twitter (twitter.com/PaulJSingh).

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SPY breaks down under key $200 level.  Entered SCTY today.  Still holding SPY short (via SPXU) and GWPH. New Focus List addition ECTY.

Video Analysis:

No video today.

Key SPY Pivot Levels: Round number $200, Old high 199,  50 dam 197.19, 197.50 and $196.50 gap fill and support levels

Under the Hood and Trading Game Plan:

We *finally* got a clean break of $200, and for a time it looked like SPY might even break $199.  In the end it closed above $199, but the damage is done. We are starting to see some clear signs follow through for shorts.  Knowing this market, I would not be surprised to see some more back and forth before we get more follow through with a $199 break.

Once we get a close below the old high at $199, the 50 dma and gap fill in the $196-197 range will come into play.  This is where we should see some attractive entries in momentum stocks.

The current game plan is to manage the SPY short position.  I continue to look for long setups on momo stocks, but will not chase. B

Current Trades

I am still holding SPY short via SPXU and GWPH.

Today I entered focus list stock SCTY on weakness. It recently remounted the 50 dma and is now basing above it.  As with the rest of my long entires of late, this was a half size position due to the overbought market.

The Trade Results Journal/Spreadsheet is up to date.

The Focus List

Finviz link to easily follow the entire focus list.  Most positions entry charts remain as annotated earlier in the week.

Take a look at the link to the focus list above and you’ll see a few momo stocks with ugly bars, like AMZN and BITA.  When the market pulls back or corrects this tends to happen in waves.  The prevailing wisdom is to look for the stocks that acted well, but my experience is these guys often are the next to drop.  For that reason I am going to stay away and just watch, unless intra-day action tells me different.  Instead, I will focus on the most recent breakouts that have a strong catalyst and volume.

New Addition:

ECTY broke out of a range going back to May on strong volume.

DGLY still looks good but I’ll wait for more of a pullback.  See yesterday’s chart.

Short Setups:

My focus now is shorting SPY via SPXU

Market Leaders

Every one of the market leaders pulled back today.  AMZN was hit hard enough that normally I would consider removal since it was already somewhat broken.  However, since it may be an over reaction to the AAPL phone payment news, I’ll continue to watch it over the coming week or two.  I did this with CAT, which I use as a gauge of industrial type stocks, and it bounced back before I had the chance to remove it.  PCLN is also on a short leash.

Please read the post 23 Laws of the Part Time Swing Trading the Market Speculator Way and How to Anayze Your Swing Trade Results  It is important to know these rules if you trade off the Report.

New subscribers and trial members please leave me any feedback/comments in the comments, via email (singhjd1@aol.com) or twitter (twitter.com/PaulJSingh).

The post Market Speculator Part-Time | Swing Trade Report appeared first on Bulls on Wall Street.

SPY broadening formation.   Intra-day video highlights stocks.  New additions DGLY and JRJC.  Holding SPXU and GWPH.

Video Analysis (3 minutes):

Today’s intra-day video about 50 minutes prior to close with  trading ideas in focus list stocks.

Key SPY Pivot Levels: Round number $200, Old high 199,  50 dam 197.01, 197.50 and $196.50 gap fill and support levels

Under the Hood and Trading Game Plan:

We’ve talked much about the SPY formation over the past two weeks, and now we are starting to see a range forming at these new highs forming a “broadening formation” at the highs.  Broadening formations feature higher highs and higher lows within a range.  Near a top they are bearish, near bottoms they are bullish.  Many failed breakouts come out of this pattern.  Another sign of a correction or pullback?  We shall see.

The current game plan is to manage the SPY short position.  I continue to look for long setups on momo stocks, but will not chase. B

Current Trades

I am still holding SPY short via SPXU and GWPH.

GWPH broke down below the moving averages, and is forming a range here.  My stop has been moved below this range, in anticipation of remount of the moving averages.  If looking to enter, a remount would give a good entry signal.

The Trade Results Journal/Spreadsheet is up to date.

The Focus List

Finviz link to easily follow the entire focus list.  Most positions entry charts remain as annotated earlier in the week.

Focus list stock SCTY bounced today and can be entered on slight weakness above remounted candle (see video).  MNST, AAPL, PANW, LDRH and BITA remain within trading ranges.

New Addition:

China is heating up again and JRJC bounced on oversold conditions after a pullback.  Entry in the $8.25-9.25 range, with a stop under 8 and target around $12 offers good reward to risk.

DGLY is very volatile right now and only good for those that can watch closely.  Two ways to play this:

1) Entry at current level with stop under breakout bar.  Using tighter stop gives low risk, high reward with a target in the $30-32 range.

2) Wait for deeper pullback on gapfill.

Short Setups:

My focus now is shorting SPY via SPXU

Market Leaders

Market leaders were a mixed bag today, which is expected when SPY closes at basically break even.  GOOGL, FB, NFLX, TSLA look healthy and ripe for entries on pullback.

Please read the post 23 Laws of the Part Time Swing Trading the Market Speculator Way and How to Anayze Your Swing Trade Results  It is important to know these rules if you trade off the Report.

New subscribers and trial members please leave me any feedback/comments in the comments, via email (singhjd1@aol.com) or twitter (twitter.com/PaulJSingh).

The post Market Speculator Part-Time | Swing Trade Report appeared first on Bulls on Wall Street.

SPY mixed signals.  IWM cup and handle setup. The Weekend video goes over 12 great stocks not on the focus list.  AAPL, AIRM, PANW, MNST, SCTY, LDRH and BITA start the week’s focus list.

Video Analysis (5 minutes):

The Weekend Video goes over some stocks ready to make big moves that are not on the focus list below that are worth watching.

Key SPY Pivot Levels: Round number $200, Old high 199,  50 dam 197.01, 197.50 and $196.50 gap fill and support levels

Under the Hood and Trading Game Plan:

Over the past three days SPY has given us mixed signals.  While Wednesday and Thursday gave us two of the worst closes since August 7th, Friday printed a strong close on an uptick in volume.  I will continue to manage my short position, but have no bias for my individual stock trades.  I will likely continue to trade with smaller position size until there is more clarity.

IWM is forming a big cup and handle formation.  An entry on pullback to $115, with a stop at $113.50 and target at the highs at $120 gives us a 2.5/1 reward to risk.

Nothing is clear and easy of late.  Here, the pattern is excellent, but we have to deal with the fact that IWM is lagging, not making highs while SPY and QQQ have.  I pay attention to these issues, but focus more on the fact that I am getting good reward to risk.

The current game plan is to manage the SPY short position.  I continue to look for long setups on momo stocks, but will not chase. B

Current Trades

I am still holding SPY short via SPXU and GWPH.

GWPH broke down below the moving averages, and is forming a range here.  My stop has been moved below this range, in anticipation of remount of the moving averages.  If looking to enter, a remount would give a good entry signal.

The Trade Results Journal/Spreadsheet is up to date.

The Focus List

Finviz link to easily follow the entire focus list.  Most positions entry charts remain as annotated earlier in the week.

I am reprinting the MNST/TWTR comparison from the Thursday evening Report because it is one of my favorite setups and somewhat rare (the post breakout rounded pullback).  MNST entry on weakness with target at $95.

I have talked about the MNST setup being similar to TWTR’s “rounded” pullback post breakout.  Notice just how closely it is following what TWTR did.  It pulled back into a rounded formation, started it’s move up, then consolidated a little before moving up again.  MNST is at that level of consolidating before the next move up.  I am looking for some weakness at $86-88, stop at $84 and target at $95.

SCTY remounted the 50 dma.  Friday held the breakout candle but swayed below before closing above the moving average.  Entry here with stop below Thursday low around $68.  Target $77 gives 3:1 reward to risk.

AAPL broke down hard from highs, taking out the key $100 level.  A pullback to the 50 dma would likely create extreme oversold stochastic levels.  Entry in the $96.50-97 range would offer a low risk entry in expectation of bounce.

PANW nice breakout pullback setup. Entry in the $85-86 range, target $92 and stop at $83.50.

AIRM is still trading within the post breakout range.  Enter at bottom with target at top.

BITA pullback to $85-86.  Target at $95 and stop at $80-82.

LDRH is in a bottoming formation and looks ready to break a 6 month range high.

Short Setups:

My focus now is shorting SPY via SPXU

Market Leaders

Most market leaders are acting in tune with the market and look ready to pullback.  PNLN has broke down and close to being removed from the list.

Please read the post 23 Laws of the Part Time Swing Trading the Market Speculator Way and How to Anayze Your Swing Trade Results  It is important to know these rules if you trade off the Report.

New subscribers and trial members please leave me any feedback/comments in the comments, via email (singhjd1@aol.com) or twitter (twitter.com/PaulJSingh).

The post Market Speculator Part-Time | Swing Trade Report appeared first on Bulls on Wall Street.

SPY closes at low of day for first time since August 7.  Momo stocks poor closes.  Z entry.

Video Analysis (4 minutes):

In the morning analysis we talked about watching for a close near the lows of the day and inverted hammers holding in momentum stocks like TSLA, BIDU, BITA and NFLX.  That is exactly how we ended up closing.

Key SPY Pivot Levels: Round number $200, Old high 199,  50 dam 196.79, 197.50 gap fill and support level

Under the Hood and Trading Game Plan:

Today was the first day since August 7 that SPY closed near the lows of the day. That by itself is not of huge significance, but the fact that many momentum stocks closed near lows or with inverted hammers raised the probability of a pullback.

The current game plan is to manage the SPY short position.  I continue to look for long setups on momo stocks, but will not chase. Biotech continues to be the sector of interest. Oil/gas is also picking up.

Current Trades

I am still holding SPY short via SPXU.  I entered Z today on a pullback toward the moving average and am holding GWPH.

Note: I have taken *half size positions* in most positions lately because I find them speculative, but with good reward to risk, and have noted that in alerts.  I am not concerned with win rate and work at keeping losses small.  If you want high probability positions *do not* enter when I take a half position or label something speculative.  

This is how I trade, looking for limited account risk, high reward to risk ratios, small losses and big gains.  If you keep losses small during slumps, you will be successful in the long run.  Think big picture.  

The Trade Results Journal/Spreadsheet is up to date.

The Focus List

Finviz link to easily follow the entire focus list.

Let’s take a look at the failed breakout in BIDU to illustrate what happened to many momo stocks today.  The stock gapped up while already at overbought levels and closed back within the trading range.  While it was up for the day, it is no longer a breakout.

This type of move should start a pullback to a good entry level.

NFLX is another good example.  Remember the fact that they closed up slightly is not what is important–it is that they closed off the highs and back within trading ranges.

INSY has pulled back to support and offers good reward to risk.  Entry around $33.50 with stop at $32 and target at $37 gives 2.5:1 reward to risk.

PNRA is a breakout-pullback setup.  Entry in the $148.75-149.50 range, with stop around $147 and target at $154 offers 2+:1 reward to risk.

BITA requires pullback to the $84-85 range, but is volatile enough to do that in a day or two and still be a good setup.

Short Setups:

My focus now is shorting SPY via SPXU

Market Leaders

Every market leader closed off highs and most were near lows of the day.  A few were flat out ugly failed breakouts–NFLX, FB, TSLA.  Let’s see if we get some good pullback entries.

Please read the post 23 Laws of the Part Time Swing Trading the Market Speculator Way and How to Anayze Your Swing Trade Results  It is important to know these rules if you trade off the Report.

New subscribers and trial members please leave me any feedback/comments in the comments, via email (singhjd1@aol.com) or twitter (twitter.com/PaulJSingh).

The post Market Speculator Part-Time | Swing Trade Report appeared first on Bulls on Wall Street.