The segmentation in terms of trending and choppy indices in the current environment makes the watchlist building practice we develop as traders very important, and in this update, I walk you through mine in the outperforming sector that are on my radar. Remember that we focus on outperformers and the scan can be as easy as focusing on the heavily weighted names in each sector.
It depends on market structure, and since “Structure dictates Strategy”, we know that having an objective way to get the structure sorted out is our first job. After that? It’s just a matter of knowing if rips should be long put positions or dips should be long calls. Get this process down with the TOPS layout I share with you all (in the chat room drive) and all other analysis does fall into place. I also share how I would look to enter XLE and XOM as well as how to use a more aggro strategy in accelerated markets.
The direction of daytrades for me, which I call directional bias, is one of the first and most important decisions I make each session. And it can be very easy with a simple level-read that I take from the daily time frame. Have this level marked each morning and it will help with the directional bias for your daytrades.
Major Earnings and the Employment Situation immediately ahead of us. Let’s look at the markets and levels that give us the clues, as well as some other trades that will likely move independently.
$AAPL and $TSLA are two mega-cap names which helped drive today’s bounce. The Voodoo Lines pinpointed the spot of last week’s lows in both these names. Let’s see what they tell us about whether we’ve seen a lasting low or just a brief relief rally?
Let’s do what we do every Friday, and review the core markets and the periphery to see how things are aligned into next week.
In this chop, knowing how to gauge chop and entering a position when you have an edge is key. I have a favorite indicator and strategy I use and I show how to set that up in different markets. The checklist requires patience but when you know specifically what you are looking for, it’s easier to wait for your pitch.
Investors were largely disappointed in Tesla this week, despite the record earnings report. I think this drop may present an opportunity, and will be following this pattern into next week.
