We Walk the Plank With Our Eyes Wide Open
The Dow Tries Out Its New Lens
Thursday morning, I went for my week checkup on how the cataract surgery was faring-or the story of my new and improved lens (surgery was exactly a week ago). Simultaneously, the DIA was checking out its new lens-making a valiant move towards the highs-with eyes wide open!
So, since the Dow and I both have clearer vision than we had just one week ago, I thought the video I brought to you today, the in-depth look at everything from the indices, to the ETFs (including the Economic Modern Family) to the basing action in the commodities, might be worth a second viewing.
Find the link to today’s video on the MarketGauge.com site!
Longs: On categories: Gap higher days we go to all categories and choose ones with lowest risk that break the opening range. On weaker days, we look at Category 3, especially if the picks hold S1, previous day lows or a major moving average and have a good risk on the reversal. The difference between Category 1 and 2 is the stock condition-a Condition 1 is strongest stock and more likely to make a parabolic move.
Note: Anything that is on this list is a candidate for a swing trade-(of course market condition is a factor) -use the max risk mentioned along with an opening range stop using fudge factor and time confirms. I suggest you decide on 1 or 2 that have a risk you like and then position size accordingly
***Market Tone: Short-term Positive 3, Intermediate-Term Positive 6, andLong-Term Positive 10. NOTE: Market Tone is updated before the open each day and reported to you on twitter.
Category 1: N/A
Category 2: N/A
Category 3: (Double Up) Positive Phase, Condition 1 through 4, Positive Pivots which means can either buy an opening range breakout or candidate for Opening Range Reversal, with Risk S1 or previous day low, whichever is lower unless noted differently, Target- Day to at least 3 ATRs from entry: (Opening range reversals are good on anything above S1)
Our daytrade picks: (Assumes good risk to lows or a strong reference point like FTPs, S1, PDLs) TEX NFLX BID GPRO IBM AMZN (ORR only)
PNRA With 21 days of consolidation, the move will be well worth the time we’ve taken to write about it each day. 180 still max risk. Over 184.21 shut your eyes and buy. Any OR is fine
CIEN Took off today. Now with an ORR or if gaps above 22.50 the 2015 high can look at a 5 minute OR as well. Think day to miniswing now.
Category 4: N/A
Phase Change:
BZH Phase change today so has to hold today’s low 17.43 max risk. Over 17.94 is best with 1 ATR risk so a swing really makes most sense. 30 minute OR or an ORR against the lows
Reversal Trades: N/A
Shorts: Focus List shorts: WFM CBS WMT SWI (under S1 only)
Category 5:N/A
Category 6: N/A
Best Best wishes for your trading,
Michele Schneider
