Never Stop

Good morning folks,

Yesterday we had a nice little rally in the indexes as it appears bad news is considered good news once again. Weak economic data and weak earnings are GOOD! I would suggest that bad news will be bad news at some point and when that happens things will get ugly but for now we just ride the pony for as long as we can.

Even the IBB had a nice little bounce. I will caution that we have some short term overbought conditions in the IWM and the energy names, and the markets remain guilty till proven innocent so do not get to bold with the size of your entries. Since earnings season is upon us we always get some nice trading opportunities.

There are a few different ways to play earnings. Sometimes stocks like to run into earnings and then fade after the announcement. Sometimes they fade into earnings and pop off a surprise beat. 

Be careful of a gap and fade off an earnings report. If its a stock you own and it is running into earnings consider scaling out at least 3/4 of your position prior to earnings being announced. Lock in the profit! You never know how the street will react to the earnings or what the guidance may be. You can always reenter for what my friend Paul from Bulls on Wall-street calls the breakout remount Kunal and Paul go over this strategy in one of their videos and it is one of my favorite swing trade strategies. Look for strong companies with great products or services that have a strong balance sheet, positive cash flow and manageable debt.  

I am going to try and do a Live Session again today and possibly Sunday morning so keep an eye on my twitter feed. 

I am working on a little series about the two conventions I attended and what I learned including some observations. I will be sending it out in pieces to the people that have signed up for the newsletter. 

Today's Economic Calendar

9:15 Industrial Production
10:00 Job Openings and Labor Turnover Survey
10:00 Reuters/UofM Consumer Sentiment
10:00 Atlanta Fed's Business Inflation Expectations
4:00 PM Treasury International Capital

Stocks on my radar premarket

Bullish and may have a swing or lottos in play

Cautiously optimistic

Very Cautious may even present a short opportunity .

GST	Gastar Exploration Announces Acquisition of Mid-Continent Interests and Marketing of Appalachian Basin Assets, ~$43.3M

News is a couple of days old but the chart is looking pretty hot closed above 1.70 looking for potential continuation and test of the 2 dolla holla 

This was a great call by @AcInvestor had a nice little pop yesterday could get some follow through today 

10/15/15 FEYE FEYE

DA Davidson Initiates Coverage on FireEye at Buy

This one has been pretty beat up lately I love the sector for the long term could get a continuation of yesterdays bounce may be more of a swing

Continues to report nice orders for both their body cams and their tasers bouncing off a nice spot another swing type but it can present decent day trades as well when you get some pr 

As BABA goes so goes YHOO Keep an eye on YHOO likely going to have resistance at 35 but if it cracks that with authority could get fun don't chase not sure when earnings are more of a swing type trade

Closed above 11 looking like it could test the 12 to 13 range be careful don't chase it 

SFXE	Robert Sillerman Proposes to Acquire SFX Entertainment for $3.25/Share in Cash -13D

Not sure but I thought there was an offer of ove 5 or so a little while back gapping a bit don't chase it but could present a day trade opp 

TWTR	Twitter Shares Up 1+% ; Traders Attributing Upside to Seemingly Strange Tweets by Steve Ballmer Suggesting He's Purchased 4% Stake in Co. Over Last Few Months; Some Suggest Could Be Account Hack

its setting up nicely on the daily for potential continuation Full disclosure I still hold half my swing position still looking a 35 test