We've been selling off since December 13th so this strategy is going to be used more as a hedge just in case we get a year end rally to the upside. It's been basing the last five days in this 380 area and may be setting up to push higher in the short term. NO stops, I'll be set up for max loss and less than 1% risk of entire portfolio. My target of 400 was...
SIDEWAYS RANGE TRADE SET UP: For the most part, this has been making relatively equal highs and lows between....let's call it 120 and 130. The 20 day and 50 day are flattening and it's not in any strong rally or strong pull back. I determined my target using the hour chart. I was thinking about having this expire this Friday, but I didn't feel that was enough...
BEAR RALLY SET UP: DIS made a new swing low 11/09 and since then it has made its way back to the 50day with lower or equal volume making this a potential bear rally. The entire market has been in a bear rally, so based on the patterns forming, this should make it's way lower to fill the gaps below. I used the doji candle on the 28th as my reversal candle at the...
Bear Rally Set Up: A couple weeks ago we set a new low around 88ish which has lead this back up to the 20 day. It's actually been basing at the 20 for a few days getting ready to make another move. The overall trend is bearish. The entry point was determined by waiting for this to trade below the previous day low. Conditions at these levels solidify an entry...
HIGH BASE SETUP: For the last couple weeks BA has been basing and consolidating at the 9 day and on Friday it suhed higher and broke out. The overall market is down today and this is still holding up pretty good. My entry point was determined when BA traded above previous highs and closed above the highs Friday. I didn't want to get in Friday because I wanted to...
Range-Bound Pullback Set-Up: Since about early September GME has been range bound between 29 and 24. The entire market was down for the month of September, yet this traded range bound in this area. But towards the end of September, it tightened it's range bound between 27 and 24 and trending lower at a slow pace. With the big green day we had in the markets...
Good morning. Last week we finished the week in the green even with Powell speaking on Wednesday. And now, we are hanging out at the 200 day. So.... where do we go from here? The charts are telling me to be bullish, but we should remain cautious at this level. The overall big picture makes you sit back and think. We visited the trend line from this years high back...
High Base Setup: Financials have a +1 outlook this week and JPM has had a nice run higher the last few weeks. It's made it to 135 which was one of my resistance points and now looks like it's basing here in this area. I decided to get in now, even though we need to see a minimum of 5 days basing, just because it's had a lot of good upwards momentum. Either way,...
Good morning! Well, the last 4 days we've been in a high base and futures are currently trading lower around 3925ish. Still somewhat basing. Or is it turning over? It already touched the 200 day so now we gotta see if the bulls have any more in them to pierce through it. And that could happen. Last week I had mentioned that the markets like a divided congress. GOP...
So a little selling yesterday. But that was expected after Thursday and Friday. Clearly these new levels we're at have many traders scratching their heads trying to figure out what's next. As of yesterday, we had 65% of stocks trading above their 50 day. Charts are telling you to be bullish. But it's more like cautiously bullish. We can probably continue to base...
Man...what a crazy week last week. With the Elections, CPI and the drama with FTX, it was a rollercoaster for sure. The FTX story was something else. But you know, during recessions, entities get exposed. Same thing happened with Enron in the 2000 bubble, the banks in 2008-2009 and now crypto. As the famous Warren Buffett quote says: "A rising tide floats all...
Good morning!!! Wow....just wow. What a day yesterday. Caught me way off guard, that's for sure. The CPI report really just lit the markets on fire bringing it back to that upward channel from the October 13th low. A few days ago I was already mentally preparing myself that this market could go touch 4000 or even 4100. I just wasn't expecting to get there so soon....
Good morning! Here we are, Election Day has passed and we get the CPI report tomorrow. Couple things about the Mid Terms. Generally, the markets like it when Democrats have partial control and Republicans partial control. The expectations are, that the Republicans will win the House. If that happens, that could be a good thing for the markets. At the time of...
Good morning. Yesterday's action brought some carry over/follow through from Friday, finishing the day with about a 1% gain. We have three types of patterns going on right now in the markets'. QQQ is telling us to sell, DIA is telling us to buy and SPY going nowhere. We bounced off the 20 day, stopping at the 50 day on SPX. So the question is: Is this ABC...
Well, what a wild Friday. The market traded in a 3% range trying to digest the unemployment reports. Lots of mixed signals right now. So it looks like we're back in No Man's Land. Step back and still look at the bigger picture, we are still in a downtrend channel. We had three down days last week with a doji on Thursday and a bounce on Friday. Characteristics of a...
So we gapped down yesterday if you didn't notice. I guess the market didn't like what Powell had to say. But overall, yesterday had a even amount of buyers and sellers. What we're waiting for is the Octobers payroll number that's due to come out an hour before market open. Now, expected is 205k. If this number comes in higher than 205k, the market really isn't...
Could it be that markets have been impatient? I think so. After watching yesterday's price action, I think the market gets the message now. Or do they? I need to see capitulation before I see a rally. But we're getting close. I've been thinking that the VIX needs to get to 40 or 50, and THAT would be my capitulation. So if that happened...what...we would get to...
Good morning! Well.....yesterday's down day I'm assuming was because of the JOLTS Report. Employment openings for the month totaled 10.72 million. Estimated 9.85 million. So, well above. This is something the FED does not want to see. It doesn't help inflation. But again, everyone wants to hear what J Powell has to say today. What could happen after he speaks and...