November 3rd Week

 The nice thing about swing trading is there is a bit less pressure to get it exactly right. I am still looking down to the 1 min, making sure the stock interacts with my levels correctly and then entering. The difference now is I dont have as much emphasis on the Tape. The chart and vol tells me enough. I also dont have too much worry over getting out asap if it doesnt go right away. I have more time to let my idea play out. I can add if 30 min later it pulls back in and holds again. I can let the trade work around my stop area and its fine. There isnt a rush for the exit right away. 

I think its a good thing for me to be trading this way because 1 I have to, but also because it forces me to slow down and let the stock do its things. 

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Market exploded, shorts screwed. Looking for more long setups mainly. Clear as day there are some great short failures that turned into great longs. Market sentiment of course confirming it. The thing to look out for now is will shorts take over again as these moves lose momentum to the upside. Bias is long, but when market turn becomes apparent, bias will need to flip short again. Just as all these shorts are trapped, now longs can get trapped just as easily. 

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As for my trading, im seeing myself look at too many lesser setups again. This time the difference is I know better than to trade them so I am quick to cross it off the list once I start recognizing they are piling up. 

Plan is to enter trades with 9/20MA on 1hr close and nearby. With either a break above a level after a tight consolidation under it, or to enter on a pullback that holds above a level/area as it turns in favor. Only taking longs above vwap and shorts under. 

Still my entry cues are very similar to my daytrades if I am at desk and able to get it on then and there. Difference is holding time.

Stop is if it breaks under level/area AND holds under. Volume and failed breakouts are also cue to exit on stop level hit alone. 

Adds are on pullbacks to levels of interest that hold.

I need to have larger positions on these trades. Scaling out is essential here. 

    1. Keeping profit

    2. Letting some size ride as it acts correctly.

If im long only 1 contract, I cant scale out and I cant capture the big picture idea. 

Bigger risk and bigger account is something that needs to happen for me to be more successful at this. 

Profit take on PT hit and 1min breakdown.

Warning signs to exit trades early are a loss of vwap. These trades are meant to run with momentum and not look weak again. A loss of vwap is a significant sign of weakness and a turning point for the stock, meaning, I dont need to be long it.

These are swing trades, but im still not ok giving up all of my premium on the option just from a simple pullback. I can always put the swing back on when it acts bullish again. 

After vwap loss with vol, or vwap loss and hold under. I should be all out of the position, looking to get back in when it is above and holding. 

Market correlation is also key here. These arent necessarily news driven, high rel vol trades. They are trades taken in context with other traders positions in tight consolidation. If im long a lower rel vol name, and market is turning lower, there is almost no chance im going to win that trade and see my PT. 

Which leads me to what I need to start doing every weekend alongside charting. 

Labeling and identifying which sectors/industries are performing the best or worst, and trading that names inside of those. 

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Market ended strong. Sentiment strong and has been for a while, now with this near blow off top, making me think we will find a nice top her and revert lower again. But will have to wait and see when that trend will bend. 

I would like to buy SPY/QQQ calls on a dip to past areas/1hr50ma as long as sentiment does not drastically shift weaker. This thrust higher should be a huge tell for what to come going into end of year action. Dont want to chase, I want to see it hold these levels and get long. 

Just these past 2 days we have seen sentiment in FANG and BIG tech names turn positive. And that is huge for future trends to develop. A big bottom signal. 

All sectors Offensive, Cyclical, and defensive are positive. Key difference is offensive is leading them the most. Tech. 

Tech, Healthcare, IBB, Retail, Finance, Industrials, Energy, Materials, all very strong. 

Pretty much everything is real strong. No reason to focus on defensive names and speculative stocks and sectors are seeing clear strength. The market currently is not playing defense. They are stepping on the gas and we are seeing a great turn around in beatdown tech names. 

Ideally though, we see a day or two of rest for things to reset, let MAs catch up, New levels form to buy off of support and then go from there. Currently its a too far too fast situation. But everything on the offensive side is where focus should be. Shorts are not clean and clear overall anymore,  

M

Nothing really special

T

Starting to get a little loose with my charting and selection. JNJ took a few trades on based off of a relatively not important/not clean and clear zone. Would have been best to only chart the clear defined levels and trade off of that. 

Market big gap, started strong, JNJ same held levels and turned up from vwap, exactly what I wanna see, retraced and added on held PB, but rolled over pretty hard and out.

Later on recovered vwap and zone and turned up again, in, but again rolled lower and lost vwap. exited on near lod break with vol. Chart is not clean or clear neither are my levels. Just need to avoid this. 

W

Good setups, both long and short. Market sent rolling over a bit as is indices. Energy names on watch mainly, also healthcare mainly short. 

SM 1st trade. Held R3 well, turned up, XLE also did, market turning lower. Not clear market help. Tape did look good, L2 showed buyers here. 

rolled hard and dumped along with market. Able to bail on pullback

looking like all my setups are broke, should be nothing else today. 

R

Took play near EOD as it was acting right above levels and vwap

F

Too early trade on MNST. Need to include market gaps in my entry requirements. Market wanted to pul in at bell, that and MNST gap up, had a large gap in between MAs so was not tight. 

Also not to mention, MNST is a defensive name. Def names are not hot anymore atm. They are pulling in. Money is moving to tech and cyclical. This is more of a reason to give a stock time to build better. 

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