Watchlist, Breakouts & Setups

Keep watching the horizontal supports on the Naz, S&P and Russell 2000. These horizontal supports are 18 months old and were tested over the past four weeks and held. Not out of the woods yet. But this support holding pattern on all four charts is a good place for experienced traders to drill down to find possible long patterns on the daily charts, were we will find many new bullish crossovers of their 20 x 50 EMAs, or breakouts from easy recognizable long patterns, or setups for possible breakouts.

Just the weekly charts to focus on here.

$COMPQ Nasdaq Composite weekly chart

$IWM Russell 2000 weekly chart

$SPX S&P 500 weekly chart


$ICLN weekly chart: watchlist for a possible breakout soon:

$ICLN daily chart watchlist has a sweet set up for a possible breakout:

:pushpin: Note that we are only .03 cents away from a bullish crossover of the 20 x 50 on this daily chart

:pushpin: Friday’s close is right under the four point downtrend line of the wedge. Also, Friday was the fourth point on the underside of that line.

:pushpin: Also, we are just .25 cents under the 200 EMA. If we close above that this coming week, that’s another area to consider adding after a breakout.

If you’ve been kicking the tires on buying some clean energy names, this ETF might be the place to cover a lot of bases.

Here are the Top Ten Holding for $ICLN

Name	                   Symbol	% Assets

Vestas Wind Systems A/S    $VWS	         7.61%
Orsted A/S	           ORSTED	 7.43%
Enphase Energy Inc	   $ENPH	 7.12%
NextEra Energy Inc	   $NEE	         4.29%
Xcel Energy Inc	           $XEL	         4.18%
Enel SpA	           $ENEL.MI	 4.02%
Iberdrola SA	           $IBE.BC	 3.96%
Plug Power Inc	           $PLUG	 3.86%
SolarEdge Technologies Inc $SEDG	 3.73%
SSE PLC	                   $SSE.L	 2.92%
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If you ping the charts links in the OP, you should see the “inside day” candlesticks forming. In Japanese candlesticks we call this look a “harami” where the open and close are currently “inside” the body of the preceding candlestick formed last week. This is also called “pregnant lady” and by end of week, should the candlesticks for the three indices here still show “inside days” or “haramis” it would suggest (the operative word here, “suggest”) that a change in sentiment would be coming the following week.

Let’s see how this plays out. More sideways “basing?” Break to the downside?

Patience is key.

Meanwhile, I am making good gains today with my short ETFs: $DRV $LABD and $SQQQ. I am using these as hedges against stuff that I have nibbled on and I’m slowly adding to on the long side of things.

Note: I am also holding an equal amount of $LABU, the long inverese of $LABD. It is easier to “pull off” one trade once a new decisive move breaks out or breaks down on either or.

1. $LABD

$LABD daily chart (Biotech 3x) showing a breakout from a 3 week old down trendline today:

$LABD weekly chart shows the push off from a horizontal support in that $25 region

2. $DRV

$DRV daily chart (Real Estate short 3x)trading above the 50 and 200 EMAs but I want to see it do the same with the 20 EMA. I hope to see all EMAs bend upward. Trading inside this triangle is for the fleet of finger. THIS IS NOT AN INVESTMENT VEHICLE BUT A TRADING VEHICLE TO SCALP GAINS AND THEN BUY SHARES IN RELIABLE DIVIDEN PAYERS, SIX OF WHICH I HOLD AND ADD TO WEEKLY FROM SUCCESSFUL TRADES IN VOLATILE SYMBOLS SUCH AS THE THREE SHORTS HERE.

$DRV weekly chart walking up short-lived trendline and if we get above horizontal resistance on this chart, I’ll add more. On the flip side, I am ready to pull off this trade on any break down through this trendline:

3. $SQQQ

$SQQQ daily chart shows the 200 EMA and its 3.5 month old trendline tested last Friday and held while the bullish crossover (20 x 50 EMAs) which started in April is still intact. Again, this is only for traders adept at moving quickly. THIS IS NOT A LONG TERM BUY AND HOLD as the underlying futures contracts suffer decay as they roll over. Hold onto a 3x type symbol and you will die a death from 1,000 cigarettes’ burns.

$SQQQ weekly chart walking up the bottom trendline of that steep UP channel. Any breakdown of that bottom trendline - even intraday, especially intraday, and I jump out. Not how that horizontal support is still intact. YOU MUST BE ABLE TO MULTI-TASK IN DIFFERENT TIME FRAMES TO BE ADEPT AT TRADING THESE 3X VEHICLES SUCCESSFULLY. YOU CAN’T BELIEVE YOU CAN TAKE YOUR EYES OFF THE ROAD WITH AUTOPILOT ENGAGED.

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