The purpose of the Week Ahead post is to prepare you for the upcoming week in the markets. I do this not only to help others learn and develop trading skills but also to develop and cultivate my personal thoughts for the Week Ahead. Below you will find a written commentary portion followed by a Video Analysis the stock market and the set ups I am watching this upcoming week. This post is organized into sections, see bold titles and skip the items in which you are not interested in! Enjoy!
Twitter – @BenCBanks
StockTwits – @BenCBanks
Review of Last Week
You may view last week’s Week Ahead Post here – http://www.bencbanks.com/the-week-ahead-twitter-ipo-trader-dizziness/
This past week we came in thinking that perhaps we would see one more push from the bears after Thursday’s horrid looking candle that was then engulfed on Friday – but nope! We are discussed that IF the bulls would like to remain in control after Friday’s candle they would need to hold 1760 or at least Friday’s lows thus increasing the likelihood we would continue higher and breakout. This second scenario is exactly what took place. I remember specifically last week talking about the prior week was frustrating and a lack of momentum, this completely changed and this past week felt like the opposite. Stocks (not just indices) were having strong momentum breakouts and trading much cleaner. This was nice to see this past week and appears as if it can continue into the week.
I participated in two podcasts this past week, one with Andrew Shelby which will come out on this upcoming Tuesday as well as one with Solutionsology which can be viewed here if interested – http://www.blogtalkradio.com/everydayradio/2013/11/13/hear-the-amazing-story-of-young-rising-investor-ben-c-banks
Also, if you happen to have a podcast or broadcast of your own – shoot me an email and I will be happy to be a guest on there sometime!
The Week Ahead Potential Scenarios
This upcoming week has a couple scenarios that could play out. Both of which we have seen unfold this year.
Number one, a pullback after 4-5 days up to retest the breakout zone of 1775. Many people are likely looking for this type of trade, thus we not get it.
Number two, Look at the chart of January in SPX, almost the EXACT same thing occurred, engulfed candles, then a slow grind higher with many people becoming frustrating. As a result of the small bodied candles, still set ups out there and the nature of the sentiment I believe this scenario is more likely for the upcoming week.
So, you ask, how will I be trading this upcoming week according to my thesis? Well, it is quite simple: I will continue to take breakout trades in stocks that I find set ups in as well as incorporate proper risk management into these trades. Some trade ideas are in the video ABOVE as well as (not as many), in the annotated charts BELOW.
Twitter Analysis and Recap of Last Week
So Last week Twitter IPO-ed and we spoke here about how we would be on the look out for a 80/20 reversal trade on that upcoming Monday (this past Monday). This trade thesis came about because it was down almost 8% since the IPO opening print of $45 and down 2 days in a row (opened down making it 3 on that Monday). This is exactly what took place this past week. At this point there is not a very actionable set up in this stock but one could be developing here in the next couple of weeks. Now we have a pivot high at 50.09 and a pivot low at 39.40, these are our two levels of focus from a swing trading point of view. This stock may need a couple more days or even a few more weeks to work out before it provides a strong technical picture. However long it takes, it will remain on watch. Perhaps it can do something similar to what we saw in $VJET in the next few weeks (though I doubt to that extent). Below is a chart highlighting the wedge pattern that is developing, click to enlarge.
Trade Review From The Past Week
Occasionally I will do a trade review on the website so share what I am thinking in REAL-TIME of a trade. The below three trades are the three trades I took this week, I only took these three trades the entire week so it was a relatively inactive week compared to ‘day traders’. Below are three different charts, you may click to enlarge the charts to read what I have written on them as that is where I spoke of the trade and the thought process. Enjoy and let me know if you have any questions!
Set Ups For The Week Ahead
Some Charts! Below are some set ups for the Week Ahead that I will keep my eye on. These are by no means all of the set ups, there are many more than I did not cover here and did in the Video Analysis above. Enjoy and be sure to ask questions and share! See you here next week!