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.
It’s all about identifying the path of least resistance.
Sigh of relief? Yes the markets were pleased that Powell didn’t knock the market over while it was wobbly. Seasonally we are in line for a move higher into mid-February but that’s four weeks away so we must not expect choppy indices to lead the way but rather the handful of up trending sectors and stocks. In the meanwhile I deep dive what’s next for the US dollar, euro, gold, and crude oil.
This is a bread and butter setup and here’s how it played out in the NASDAQ this morning. A couple things to remember when daytrading. The first two hours after the bell is usually the best time to take advantage of moves. After the first 30-minutes, some of the best directional clarity will reveal itself. Knowing that here is the “Breach Retreat” a setup you can put to work tomorrow.