Trend-Channel Line approaching upside. positive news out of Russia can blow us up out of this channel $es_f
I am the first to say never be over confident but as we look back at these stocks you will see the value of waiting for the confluence of indicators. The other thing I will always stress and find this to be a major obstacle for beginner traders is the concept of buying into weakness and selling into strength. Most people have been conditioned to fear or stay away from weakness and to chase or be attracted to strength. Even though this seems like a logical approach the markets. The mind of a novice trader will be more susceptible to chase a stock that is acting good without knowing where the short term tops are, causing them to get in and then seeing their stock instantly pullback. This will be a frustrating lesson but easy to overcome. There is a right way and a wrong way to approach this method. Each trade should be planned out at least in your head and there is one simple rule that will give you a huge edge in the markets. This rule is based on the Stochastic Oscillator (Indicator) Another thing to remember we cannot control market moving events. In this day in age we get news out each day and some of it will impact the market in a negative or positive way. These events will neutralize most technical indicators for the short term and you should be aware of this and adjust your trading to reflect that. Important Rule: Every trade should be broken down to its smallest time frame or at least the 60 minute time frame. This is the biggest mistake I see from traders. The 60 minute time frame is fast enough to wait for even for the short term scalper and I consider it perfect for the short term swing trader (holding 1-3 days). There is no holy grail in trading but this little adjustment will greatly improve your chances in the markets. Now exits are just as important and you need to understand that the stocks or (whatever you trade) will go through a cycle. In a bullish trend you will see a move up then a pullback or consolidation then a continued move higher and the opposite for a bearish trend. The 60 minute time frame is the first indicator I use to focus on a short term exit. No emotion no greed here. In terms of being long you will see more times then not a stock stall out and even pullback when the 60 gets overbought. It's really a perfect timing tool and as I said in the beginning you need to know that your trading plan is. If its short term and you are just looking for a fast in and out then you would act on the 60 min rotation if it was a longer term swing trade then you have the option to let the trade go through it's cycle and consolidate or pullback before moving higher. Trading is hard but its because traders are tied to there emotions. Fear and greed is something everyone has to conquer.This is just part of the process to make that possible. There is a lot of other things that will help you on your journey. Position Sizing is just as important. I will write about this next week. Position sizing is just as important as this weeks post. Lets look at this past weeks High Probability setup FMC we had great patience waiting for this to set up properly. Stochastics at the time of the entry where oversold on both 60 min and daily time frame and it came down into our High Probability setup trend line zone. The breakdown of the bigger channel happened due to market volatility during some geo-political events. The notes posted mentioned a fast profit to be had and it did not disappoint. I am still holding (I expect a move back up to top range of profit zone. The alert was sent when profit zone was hit on Friday. V (Visa) Well Hope you took profits on the alert. Worked out fine but it happened fast. Still in this myself I feel V is a great stock for a swing, but the truth is I was no where near internet connection when the alert hit. Still Holding... BA (Boeing) Kick Ass Trade of the Week..This was a great set up and we took profits +3.76 It had all the key components of and HPS Stochastics, Recognizable Channel, Reversal Candle, Quality Name, and even multiple time frame on the entry. How can you not want to be in this?
$VXX action extremely interesting as markets grind higher so is the $VXX, Stocks in focus today $LULU, $AAPL, $APC
Love this week's watch list! Last Week's Oil and Gas plays performed perfectly. I expect the same results this week. Last week's Best Bets and Sector in Focus