Market Notes:
I used the bounce today to enter short early this morning, according to the analysis detailed last night. The tricky aspect of this trade is stop placement. The tight stop is at the 50 day moving average, which provides the lowest risk of the two stops. However, since price bars that form the right shoulder of a head and shoulders topping pattern are within and above the moving average, there is a decent chance of getting prematurely stopped out.
I have chose to use the price pattern rather than the moving average. Thus, my stop is around the blue line on the chart below.
Note that I used SDS for my trade (inverse short), but will eyeball the SPY chart for my stop.
Focus List:
The focus list from yesterday still applies, as long as stocks near good entries. Here are a few charts:
MNTR nice breakout. Huge gap makes trade a little tough. Entry near bottom of breakout bar with stop below.
As with MSTR, enter near bottom of breakout bar, with stop below. While MSTR is a trend continuation, CEC is a trend reversal breakout.
AKS looks horrible, but is very oversold and near price and moving average support. This is a rubber band oversold bounce setup.
FUQI looks toppish and broken. I'd like to enter on bounce. It could fall to the 200 day ma in the 15-16 range.