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Learn this pattern for the turns
It’s a tough environment as we head into Options Expiration Friday. This is the kind of month where we remind ourselves that treading water is okay and even a skill to develop. There is a pattern and a series of reads that has helped me tread water and not get badly caught in a falling market, and in this update, I walk you through it so you can see it, too.
Goldbugs Rejoice!
Gold has underperformed for some time now, but today’s showing may be a sign of what’s to come. I believe we’ve got fundamental reasons to lean long on precious metals, but now technicals are beginning to confirm that as well.
Uncertainty in a Nervous Market
In this video, we look at today’s stock market action and the wild swings we continue to get. We have a lot of uncertainty happening now to an already nervous market. What is causing the erratic moves we are having and how do we trade it?
Are we in a Downtrend or Oversold?
After some dramatic sell-offs this week, this question is the one that needs answering. We need to think about the range the indices are trading in, the support, as well as the market structure to determine the strategy and indicators we want to use. In this video I walk you through how to easily do it step by step.
Working the numbers in your favor
Trading is a business. As traders, we need to stay open minded to what shifts we need to make in our trading to add consistency and continue success, especially as the market transitions from trend to chop (at best). We have to adjust and change our habits so that we not only succeed in times of high momentum but also when we don’t have as much “wind behind our backs”. We’ll focus on the charts, indexes, and trade ideas, but I want to break down the basics to start working the numbers in our favor.
Crude and oil stocks are in sync
Today’s crude oil chart shows that the 123 pattern has finally continued and set up an uptrend and buy-the-dips are valid. Oil stocks were waiting on the commodity to catch up and they are now in sync. This puts these symbols on our watchlist for buys as of tomorrow.
In Balance
Volatile week that ended in balance, but there are a couple of standouts for us to review.
Levels that could catch a bid
Next week we will all be watching to see if buyers step in at oversold support levels. This is what makes chop challenging and why we must wait for our edge at the edge in chop.
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.
This is the index to watch
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.
