Tuesday, August 25, 2015

How to Trade During Market Selloffs and the Power of Support

The one key element for traders looking to "buy the dip" is support. Support levels are powerful because this is the level where we see buying interest due to previous buying, trend lines or moving averages.

Even during market selloffs where the drop seems to have no floor, support can have a powerful impact. Let's study these momentum stocks during the current selloff. Notice that all of these bounced at previous lows or key moving averages. 

Please retweet if you liked this article! 

Remember, we are always trying to make the complex simple, and nothing is simpler than buying at support levels.

SPY bounces off October '14 low


GOOGL bounces off pre-earnings breakout gap level


CMG bounces off 200 dma


UA bounces off 200 dma


These charts are great examples of the power of support and how to trade during market selloffs.

Next week I will present a webinar on swing trading and handling market selloffs. Keep your eyes peeled for info from www.bullsonwallstreet.com

Subscribe to The Market Speculator by Email and never miss a post! 

If you would like to learn more about how I trade, receive my nightly focus list with market analysis, setups and trade alerts, sign up for a 14 day free trial at BullsonWallStreet.com.

Thursday, August 20, 2015

Chart of the Day: Facebook and the Round Number Breakout

Today's chart of the day is Facebook, which despite a tepid earnings reaction this quarter is showing strong relative strength versus the market and looks to make a run to $100.

Keep an eye on this $100 level, which also is near the all-time high breakout level. Entry can be made on breakout or early in anticipation of the breakout.



Subscribe to The Market Speculator by Email and never miss a post! 

If you would like to learn more about how I trade, receive my nightly focus list with market analysis, setups and trade alerts, sign up for a 14 day free trial at BullsonWallStreet.com.

Wednesday, July 29, 2015

Chart of the day: PYPL

Today's chart of the day is a recent IPO that almost all of us use for online purchases, Paypal.

PYPL has formed a few key levels that we can now trade off. First are the IPO lows and highs, which form an 8 point range between $34 and $42. Watch for either a pullback to the low or breakout of the highs for a good, low risk entry. The other two key levels are the gap fill and pivot areas annotated on the chart below.


Subscribe to The Market Speculator by Email and never miss a post! 

If you would like to learn more about how I trade, receive my nightly focus list with market analysis, setups and trade alerts, sign up for a 14 day free trial at BullsonWallStreet.com.

Wednesday, July 22, 2015

Chart of the day: CALA

CALA is a biotech stock that has shown some buying interest while in the midst of a down trend. The recent volume surge has the stock over it's 50 dma, which could start a remount and give it the momentum it needs to make a short term run. This is a speculative setup.
  
Please retweet if you liked this article! 



Subscribe to The Market Speculator by Email and never miss a post! 

If you would like to learn more about how I trade, receive my nightly focus list with market analysis, setups and trade alerts, sign up for a 14 day free trial at BullsonWallStreet.com.

Tuesday, July 21, 2015

Stock Chart of the Day: IBB

Biotech ETF IBB has been on a spectacular run since the market selloff, but now the chart is telling us that it looks ready to rest. Intraday today a negative candle pattern is forming at overbought conditions. If this pattern can hold going into the close, we could see a pullback. Two key levels are the old pivot high at $382, and the 50 dma at $370. These areas provide initial targets for the expectation of a shallow pullback. I would not get more ambitious with targets until IBB gives a strong signal of a deeper correction since it's been so resilient over the past year.
  
Please retweet if you liked this article! 


Subscribe to The Market Speculator by Email and never miss a post! 

If you would like to learn more about how I trade, receive my nightly focus list with market analysis, setups and trade alerts, sign up for a 14 day free trial at BullsonWallStreet.com.

Friday, July 17, 2015

Chart of the day: ANFI

Yet another earnings season is upon us and we have our first earnings breakout setup. ANFI broke out  from a down trend and remounted the 50 day moving average on huge relative volume. I will look to enter on a slight pullback.


Subscribe to The Market Speculator by Email and never miss a post! 

If you would like to learn more about how I trade, receive my nightly focus list with market analysis, setups and trade alerts, sign up for a 14 day free trial at BullsonWallStreet.com.

Monday, July 13, 2015

Chart of the day: AMAZON and the new high breakout

Amazon is setting up as a new high breakout entry. The stock is currently above it's earnings breakout level, which sets it up in a "new box" above the $415-445 range.

A close here could set it up for a run to $500.

Please retweet if you liked this article! 


Subscribe to The Market Speculator by Email and never miss a post! 

If you would like to learn more about how I trade, receive my nightly focus list with market analysis, setups and trade alerts, sign up for a 14 day free trial at BullsonWallStreet.com.