3 Ways to Put in a Low
Stocks have been under pressure for a few weeks now and there’s a fair chance there’s more of that to come. Whether you’re running the short lower or looking for the spot to buy, these 3 indications should help.
Stocks have been under pressure for a few weeks now and there’s a fair chance there’s more of that to come. Whether you’re running the short lower or looking for the spot to buy, these 3 indications should help.
From the Dow to crude oil, gasoline, and gold… to the sectors to watch I cover why the Dow is the relative outperformer to watch and what seasonally we could see as we head into late January. Despite the volatility of the early part of the Thursday session, the Dow remained strong despite what were perceived to be hawkish comments from the next No.2 at the Federal Reserve.
It’s been a choppy January and frankly the chop has been around since late November but one index is starting to show signs that it is the relative outperformer amongst the indices. It will also shine a light on the sectors to watch going into mid-February. Ultimately relative outperformers will handle this environment best, and it is our job to find them.
In this video, we look at the extreme swings we are having in the market hour by hour and day by day. What is going on with he market and how in the world do we trade it? We talk about what I am looking at and what strategy I am using.
In this video, we look at the extreme swings we are having in the market hour by hour and day by day. What is going on with he market and how in the world do we trade it?
Always important to trade what we see not what we think. Once we have considered sector strength, FOMC messaging, as well as technical clarity, it’s the Dow that has emerged as the leader. Knowing that we also can build far better watchlist’s at the sector and stock level which is one of the reasons I prefer a top-down analysis approach. I walk through the process step-by-step in this video.
We started the day with two small 1 lot trades and built up a PnL of 2K. From there, we opened up the doors to >10K on the day as we expanded our risk. Check out how.