Recap 03/28/19

Market managed to squeeze three minor swings into today’s trading. Before the open we were long after the GDP and Jobless claims report.

Once the market opened those who were long, began to take profits. We were pretty quiet so did not catch the short until after 10:50 Eastern.

During the last half hour we were long again—the market was confused today.

See chart:

The second low by the arrow was a fake out break out.

Fed Day

We started out to the upside.

Two quick double bottoms lead to buys at 24750 Dow.
Then as we advised, we just wanted to make sure the Fed did not step on their own necks with a negative announcement.
We were off to the races. Good job all.

Week In Review October 20, 218

The market traded in a range from 24990 to 25845.

We suggested that due to increase in volatility that clients reduce total contracts traded from normal to 60%.

That strategy worked.

Our daily trend (measured by the daily 20 period moving average vs 5 period moving average — remains down.

We officially called 21 short trades and 8 long trades. Our stops were raised to an average of 26 ticks on the Dow to increased volatility.

We succeeded on 17 of 21 short trades and 4 out of 8 long trades.

Next week we again focus on China.

China’s officials just reported that gross domestic product grew at a slower pace than anticipated for the third quarter. Data released  showed its economy expanding 6.5% year-over-year between July and September, compared with 6.6% expected and 6.7% in the prior period.

Let’s make money together.

Help give some back to our neighbors in Panama City, FL

Make Money Help Others

We have had a great week shorting the market.

How about helping out, at least financially, the victims of the latest hurricane — Michael.

Range Trade

In the morning we stated that we expected the market to break out of the previous day’s Range . . .

. . . At the end of the day it would return back into the range.

In the morning we were short; then traded the long side for the last hour. 


Today’s recap.

We are in mentorship week. Of course market was closed, but we slipped in a couple of trades in thin market.

On a sell stop to short at 25235 at 9:31 Eastern we grabbed 15 ticks.

Shorted again at the consolidation of 25158 at 9:58 time frame.

The lows were put in with a rare triple bottom at 11:06 am.

Some traders took a light long at 11:18 am.

Looking for more activity tomorrow

Good recovery Mr. Market

We covered all shorts initiated on Friday. As we suggested, only the most well-funded accounts should have traded today from the long side.

If we can get the average true range down to 35 or so we can begin to trade normally.

Great job all.

Pullback vs Breakouts

Very quick reminder. If you are following the trend (Duhhh-up lately) it is ok to buy on a break out of resistance.

Pullbacks, when you get them are even better risk-reward trades.

But counter trend trades (shorts for now) have to be made just after a market is overbought. If you wait after the Dow goes down 50 points:


Can you say up….all day !

So we tried to poke the bear yesterday for a very short time and guess what he went back to sleep. Not sure when he will show up but for now it is still bull time…..

Rollar Coaster Ride

Do not get off Track…..So had huge opportunity on both side of the market today 75 pips down and a ride all the way back and more. Learn to get a good entry and stay on track.