Hump Day Soirée

Coming up on Wednesday of this week, two of twitter’s finest market cognescenti, @stt2318 and @sandman7591, will present themselves in an open forum Q&A chat session. I encourage everyone to come for a visit. Bring questions about swing trading strategy, or even individual stocks. Maybe you have a chart you think is ready to burst? Let’s discuss it and build a watchlist together.

The webinar begins at 7pm EST, but since the venue is the same place as our intraday chat, we’re opting to open it up all day. Things usually get going a couple of hours before the morning bell. Join us if you can and lurk only if you wish. That’s okay too.

Click here to confab:

This is going to be a fun day with about 100 people in attendance. Hope you can make it!

(The room will be password protected until Wednesday. If you want to join us earlier in the week, include your email address in a comment below, or hit me up on twitter @chartseer, and I will reply in a direct message with the key.)

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Mid-October Watchlist

CLNT potential for $9 on close over $6

COWN watching above $3.6

DDS short setup below $76

DGLY fundamental story can’t be ignored

LIOX bumping resistance

MITK 26% of float is sold short

NUAN lame bounce, watch for weakness through $18

OCR blue sky up here

TCX must watch this week, probably my favorite look right now

TROX bottom of bull flag

UNIS new from long scan

WSTL flagging nicely

WWW breakout watch

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How To Eliminate Emotion From Trading

Early this year I began trading with a prop firm.  My focus is intraday scalps on volume laden movers. Here are the rules I’ve since enacted.  Some are newer than others:

-never average into a losing trade

-delay all entries until 20mins after opening bell

-no new trades unless there’s at least 40mins left in the session

-no shorts unless SPY trades below opening price for a minimum of 30mins

-average daily volume for eligible stocks must exceed 200k

-entry only if a given stock’s daily vol run rate clearly exceeds SPY

-NO SETUP, NO TRADE >> setup requires a compelling series of 5min candles

-be mechanical

-use 1.5% stop loss, no excuses

-permitted 2 losers per day, after which go have fun / regroup

-sell half of winners +1.5%, no regrets.. raise stop on remainder to entry price

-sell half again +3% & then assign 3% trailing stop to remaining shares

-nothing held overnight absent +3% cushion

-maintain daily diary / decompression

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Mayan Meltdown

Rough action out there as we peer into the fiscal abyss.  Somehow my main computer died on the winter solstice. Coincidental, I am sure.  The new rig is a beast and shall enhance both my speed and awareness. Still tweaking things, but Windows 8 seems adequate.

Charts are messy & SPY could drop fast to the 200ema, but strive to keep an open mind

PRGO short this drug maker below $102, contingent upon brisk volume

SN sad looking energy company with the potential to rollover soon

VMC if soft again early this week on tepid volume, monitor for bounce off $50 level

ALJ another strong stock in pullback mode.. eye towards entry near $14.5

DYAX nothing broken here & may present an opportunity at about $3.35

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Cliffmas Eve

SPY rallied past $143, but the old trendline off the highs did prove to be a stubborn hurdle

The market went on to close poorly, which then led to a rather nasty candle on the weekly

Volume is in no way supportive of a healthy market… all this cliff talk & it could manifest

CA only able to muster a sad bounce during the recent run up elsewhere, short watch

DVN also particularly weak, and looks susceptible to another bout of selling

ARNA has spent months consolidating that huge move… is it ready to rumble again?

SMBL nice handle after the cup that was November, monitor for breakout

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