Quick Summary:
Analysis of SPY, IWM and QQQ key levels, which are currently our main trading vehicles. Webinar is available for viewing. It is a must view as it has deeper information on trading strategy not included in Reports. Mental Training sections is back, and we talk about the less is better approach.
Webinar:
The webinar which goes over upcoming new features for the Report, current market analysis, strategies for part time and small account traders, and review and analysis of my stats.
https://blog.bullsonwallstreet.com/swing-trade-members-only-webinar-recording
Mental Training: Focus your time on removing waste, not adding complexityOn twitter this weekend, I posted 3 quotes that resonated with some, and confused others:To attain knowledge add things everyday. To attain wisdom subtract things everyday - Lao-tzu"Don’t hit harder and longer, hit better" 49ers Bill Walsh, who was criticized for short practices. Opponents scoffed, he won 4 Super Bowls.I have found that I produce more when I focus on what to subtract, rather than what to add. - Paul Singh The point of these quotes is less is better. We tend to think that the more we complicate things, the better off we are. In trading, and many other walks of life, nothing could be further from the truth. We also tend to think that less means less work. Again, way off. It takes time, hard work, knowledge and wisdom to figure out what to focus on and what to subtract.Often my analysis may seem simple. After all, I am only using two indicators, RSI and stochastic, key price support levels, moving averages, price pattern and volume analysis. However, it has taken me years to understand how to use these seemingly simple tools and figure out what works and what does not work. Likewise, I have spent countless hours working with other trading strategies and indicators that helped me figure out what to cut.Constantly ask yourself what gives you an "edge". If adding another popular indicator adds little to your gains, repeats an indicator you're are already using or just confused or complicates your methodology, get rid of it. Focus your energy on making your methodology simple, not complicating it.Current TradesI exited TKMR (small loss) and DIG on Friday. I currently have no positions.Trade Report StatsThe format is a bit different for the time being, as we have ditched the regular focus list and are only focusing on 6 index/sector charts. We are watching key levels on each of the charts. Near term I am now keying in on 4 charts, $SPY, $QQQ, IWM and $DIG. SPY bounced Friday on a gap up and spend most of the day at the top of it's range. However, the close was weak, ending up near the middle of it's trading range and forming a doji candle, which indicates indecision. This gives us little to go on.The key level to watch is a remount of the 200 dma and the lows of the newly formed range. Last week on most days I had a plan going into the day for SPY depending on how price opened and closed. Tomorrow I am taking a wait and see approach and don't expect an entry trigger until later in the week.
The Qs pattern is similar to SPY with a key difference: here the 200 dma has already been remounted. We will watch to see how it handles the 200 dma and gain pay attention to the lows that have formed. Just below those lows is a gap fill that provides a decent short target for anyone looking to short strength.
IWM is much different in character that SPY and QQQ. Fridays' bounce failed to clear Thrusday's close and has formed what could be a "lower high" pivot. Aggressive traders can try shorting here with a stop above the double top trend line and a target at the lows.
Right now I have a slightly negative bias, but would not be surprised to see a bounce first. If we do get the bounce, we will analyze the strength of the bounce. If it is weak, we can deploy short positions. If it is on increasing volume, we will ride it with longs. I am taking a wait and see approach.Note that earnings announcements pick up this weak. I will start looking for good earnings breakout plays throughout the week.I still do not feel it's a good time to trade individual equities, though if good setups do form I will point them out. Make sure when making any trades to keep risk smaller than normal and adhere to stops. Do not get in the mode of thinking the market could bounce at any time and fear missing out. If your stop is hit, get out and make you do not suffer a big loss.Keep in mind that while I am trading for a bounces, it does not mean I am bullish on the market. There is still room to the downside and the bounce I am playing is a "pullback before another drop" type bounce. These are not long swing trades, they are much shorter trades than I normally make. We adjust our styles to the market. Please read the post 23 Laws of the Part Time Swing Trading the Market Speculator Way and How to Anayze Your Swing Trade Results It is important to know these rules if you trade off the Report.
New subscribers and trial members please leave me any feedback/comments in the comments, via email (singhjd1@aol.com) or twitter (twitter.com/PaulJSingh).
