Tuesday, July 28, 2015

Stock I'm watching tomorrow, 7/29/15

Hey y'all!

I'm baaaaack! Sorry for the long delay in posting. I was in the process of moving so I was trading mostly sporadically from my laptop as I didn't have internet access for a while during the move and then once I did I was waiting for my new Evodesk to get here so I decided not to set up my main station so I didn't have to move all my stuff twice. Anyway now everything's back to normal so I'll be doing nightly or at least semi-nightly posts with watchlists and updates! Here are some pics of my new pad and my new desk! This place and the desk are both really sweet ... If you're looking for a sit/stand desk I highly recommend the Evodesk (so far). Build quality is fantastic, operation is super quiet and smooth and for the price (under $1k shipped) it's a better value than the Geekdesk or anything from The Human Solution. I did a lot of research and decided on this one mostly because there was such close competition and I liked the fact that Evodesk uses all recycled materials and also their advertising/site design was very sleek which I expected would reflect in their product, and I was right.

Ok anyway so I've been trading sporadically like I said, and have been focusing on bigger, more liquid stocks like GOOGL, NFLX, even AAPL as I've found a lack of action and follow through in the small cap/low volume world the last couple weeks. The only small cap/momentum stocks that I'm personally finding a lot of success in are the hyper-momo stocks like NYMX, ITEK, VLTC and those types...and only on the first day of their move. After that first day nobody seems to trust them anymore so I've been staying away. Join the trend on the first day and then leave it alone. That's been my strategy recently and it seems to be working. The market is still rangebound as it has been the whole year so we need to stay vigilant in taking profits quickly and staying agile. The environment IMO is not really conducive to swing trading since everything just goes sideways but also the range makes it unpredictable for day trading due to all the gaps and potential for uncertainty surrounding China and Greece, so I've found it best to stick with REAL companies that have REAL catalysts and REAL buyers. For tomorrow I'm gonna be watching TWTR and GILD both on earnings. I suspect TWTR will be a range bound play so I will treat it as a scalp play only. They actually beat earnings expectations but they must have said something bad on the conference call because after the initial move it got pretty flushy and held the downward move. GILD on the other hand is a well established company that has solid net income and topped estimates, so I suspect we'll get some continuation tomorrow. The earnings weren't a blowout or anything like that so I'm not super biased right out of the gate but I will see if it develops a trend and then join if it makes sense. I did run some scans and found some potential runners but these will all be back burner ideas: GENE long, OHRP long, ANAC long, MU, AXN, DEPO, NPTN and GDOT all long. These will all require strength from the market to back them up so after the big bounce today I'll be a bit skeptical of anything without a very recent catalyst since the market may be in consolidation mode.

Lastly, I want everyone to take a look at this spreadsheet I've started and consider what I'm doing. I've used the 50ema as a guide for over a year now thanks to some things I learned from Michele aka @offshorehunters but I had never really run the numbers on it. To determine the feasibility of building an actual strategy around this I'm tracking results for any stocks that are near or slightly above the 5 minute 50ema at 10:30am, and watching to see if they bounce. I'm not trying to push the system, but showing you how I normally do strategy development when testing new theories. If you're serious about trading I recommend you do this with your favorite setups/theories as well. Track the win rate over several months and if it's high enough you can start using the strategy. Pay attention to whether it is working organically or being dragged along by the market or other factors as that will be important once the market character changes as it always does.

Alright that's all I got for ya tonight! Let me know if anyone has any questions!

Chris

Note: Visit the full post at my site for links ... not reposting them here!

EDIT: Damnit I can't fix the title? should be stocks, not stock, lol



Submitted July 28, 2015 at 11:28PM by ghostofgbt http://ift.tt/1DNIG2R

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