***MAGIC SWING SETUPS*** January 21 - 24, 2014 --> $SPY $QQQ $DIA $IWM $NOR $XON $HILL $LITB

Talk about Option Madness, did you guys check out the winners I posted here on the previous blog? All spelled out to you before the moves even happen. I told you what I was going to do before I actually did it. Whether some of you took advantage of the info I shared or not is up to you. I post here just to let you see how I analyze my charts and how I set my trades up. Hopefully you learn something from it. Also keeping this blog helps me to stay disciplined with my trading.

So whats on the agenda for this coming week!? The Option plays posted on the last blog post that have not been traded yet are still in play, but I'd also like to share with you a few setups I'm looking to take this coming week. But first a look at the markets. Remember, the key is to time the markets GREEN and RED zones with the GREEN and RED zones from the setups. If they are both entering their same colored zones at the same time then the probability of the setup working out is highest. Otherwise, market needs to be trending upwards to take entry of setups in the GREEN zones.

SHADED GREEN ZONES = Strong Buy Zones
SHADED RED ZONES = Strong Sell Zones

Market Outlook (Jan 19th 2014)

The markets have all bounced from their areas of great demand, meaning the instititutional investors have jumped back in with their orders propelling the markets back up. Where we go from here is a guess. We could see downside from here as the demand from the zones that we just touched, have now been eaten up. It's up to the investors now, if they see value and buy up the market or not. Earning season will play a big roll in that decision going forward.

MARKETS

$NOR - I like this one retracing back down to the $3.40 area, coming from some supply from up above. If it makes another run up my targets are outlined in the chart.

$NOR

$XON - This one's been running and I think it still has some gas in the engine to take it a little further. Retracing now to a nice area of demand.

$XON

$HILL - Getting into this one late in the game but it's got the strength and the room to continue until it hits the Weekly Supply area above. Will be a nice $1 move. Will take partial profits at $5.26 to lock in gains as it may drop from there before heading back up.

$HILL

$LITB - Missed the dip a few days ago but still think this one heads up further. Where I'm buying and selling are outlined on the chart.

$LITB