***MAGIC SWING SETUPS*** January 27 - 31, 2014 --> $SPY $QQQ $DIA $IWM $BCRX $TUES $KAR $KOG $GCI $CECO $YY

Wow, what a beating the markets took this week. I think it's a good thing, it didn't want to go higher because nobody wanted to buy higher, we had to get traders excited about buying back into this market and the only way to do that was to drop the prices.

Taking a look at the markets I see that we are into great areas on demand. The markets based on what i see should be heading upwards next week from these lows. Check out the charts below for more info.

So knowing this, I am looking to go long on some trades, either buying the stock or buying options. Below I have outlined some of the trades I am looking to take. 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 25th 2014)

Markets

$QQQ ==> On January 5th,  I posted on this blog that you had to watch out for the Huge SUPPLY on the QQQ's. I said when the market hits this zone it will fall. This is the chart I posted then.

$QQQ

Fast forward to the 22nd, the QQQ's hit the zone to the penny at $89 and what happened next? The market dropped. I bought puts on the QQQ's when it hit $89 and made a nice profit holding into Friday. Take a look.

$QQQ

$SPY ===> The $SPY has got a lot of areas of Supply up above current price which could send the market back down. If that seems to be the case then i will be looking for shorting opportunities. Take a look at the areas of Supply on the market below.

$SPY

$BCRX ==> If market and $BCRX are both hitting a Supply zone then this trade is what I'll be looking to take.

$TUES ==> This one is coming off of a great area of Demand, meaning this stock should be heading upwards now as the institutions fill their orders. Targets are outlined below on the chart.

$TUES

$KAR ==> Another play off a major Demand area, should propel this one to the target below.

$KAR

$KOG ==> If it's good enough for billionaire hedge fund manager John Paulson, then it's good enough for me. Details below.

$KOG

$GCI ==> This setup is pure perfection as for what I am looking for in a trade. Great company doing well, earnings coming up Feb 4th so beware. The stock is now retracing normally to an area of great demand where the institutions are waiting with their buy orders. Take a look below. Two targets are outlined but I may hold this one longer.

$GCI

$CECO ==> If you missed your first chance to get into this really nice runner, here's your second chance. I'm looking to get in on another retrace back down for entry. Take a look.

$CECO

Option Madness
Here's some option plays I'm looking to take and have already opened on these plays.

$YY ==> I bought some Feb 22 $55 Call Options on $YY friday afternoon, after it hit a great area of Demand. Targets are outlined below.

$YY