Good Day Traders,
Overview & Highlights: Big question for the next couple of weeks, will the Indexes followed the historical post-election pattern? We shall see. I will be traveling to California at the end of this week for the Bay Area Money Maker meeting on Saturday. If you are in the Bay Area stop in at the San Jose Masonic Saturday morning starting at 9 a.m.
Upcoming Webinars: At Active Trend Trading we offer two webinars per week to provide training plus trade and market updates. See the schedule below for the next webinars.
The How to Make Money Trading Stock Show—Free Webinar every Friday at 11:00 a.m. PDT. This weekly live webinar helped traders find great stocks and ETF’s to trade with excellent timing and helped them stay out of the market during times of weakness. With guest from around the world you get a great Global perspective.
I will be flying to California this week so the next webinar will be the second Friday in February.
How to Make Money Trading Stocks on Friday, Feb 10th
Register now for the next live webinar at the link below:
Register Here: https://attendee.gotowebinar.com/register/7562489734728631809
Time 11:00 a.m. PDT
Next Training Webinar: Feb 1st
For Premium Members, our Wednesday evening training is developing some fantastic traders
Topic: Tying it All Together
** Friday’s “Final Hour”: Feb 10th **
Time 12:00 p.m. PDT
For Premium Members, provides trades and set ups during the final hour of weekly trading.
General Market Observation: Each of the three Tracking Indexes began pulling back today. Of significance was the gap down on both the SPX and NDX. The SPX shows an Island Top which clearly shows the upward momentum is waning. We must remember that each of the Indexes are still in an uptrend and looking for solid entries off pullbacks is warranted. However, being aware of the Historical Seasonality in a Post-Election year is also prudent. If price action follows the historical pattern the Indexes will be entering a weak period between now and late March and early April. On pullbacks, I will wait for the uptick in the TSI and Momentum. If current price action results in a thrust down taking out the 50 day moving averages, then I will evaluate the reaction move for a potential downside trade.
The SPX is pulling into support at the 2260 zone and holding above the 20 day EMA. Today’s candlestick is a Hammer but not at the end of a significant downtrend, so all it only tells us it that buyers came in just below the 20 and buoyed prices into the end of the day. Today’s gap down resulted in an Island Top which has connotations of weakness in the near-term.
The NDX also gapped down this morning finding support at the 5100 level. Price action finished back above the 8 day. Like the SPX the range of today’s negative price action was larger than recent daily moves. The daily TSI has now crossed down with Momentum also falling. The clues for the NDX are weak, but the uptrend is still in effect.
The RUT finished at the low side of the range established over the past several weeks. Price action bounced off the 50 day EMA but failed to finish in the upper half of the day’s range. We expect the RUT to be the weakest Index during the first part of the year, but price has not totally broken to the downside. Price continues to move sideways in a trading box between support at 1341 and resistance at 1384. Today’s price range was also larger than average. If the RUT takes out support I will look to trade to the downside using triggers off the 1-Hour Intraday Charts. A close below current support would increase the probability of a move back to the 100-day moving average currently at the 1303 level.
SPX: Downside Market Short the SPY, SPY Puts or SPXU.
Preferred Long ETF’s: SPY, UPRO and SPXL
NDX: Downside Market Short the QQQ, QQQ Puts or SQQQ.
Preferred Long ETF’s: QQQ and TQQQ
RUT: Downside Market Short the IWM, IWM Puts or TZA.
Preferred Long ETF’s: IWM and TNA
The How to Make Money Trading Stock Show—Free Webinar every Friday at 11:00 a.m. PDT. This weekly live and recorded webinar helped traders find great stocks and ETF’s to trade with excellent timing and helped them stay out of the market during times of weakness.
How to Make Money Trading Stocks on Friday, Feb 10th
Register now for the next live webinar at the link below:
Register Here: https://attendee.gotowebinar.com/register/7562489734728631809
Time 11:00 a.m. PDT
To get notifications of the newly recorded and posted How to Make Money Trading Stocks every week subscribe at the Market Tech Talk Channel: https://www.youtube.com/c/MarketTechTalk
Index Returns 2017 YTD
ATTS Returns for 2017 YTD
Percent invested initial $116K account: Strategies I & II invested at 13.76%; Strategy III invested at 26.6%.
Current Strategy Performance YTD (Closed Trades)
Strategy I: Down -$934.90
Strategy II: Up $0.0
Strategy III: Up $1847.00
Cumulative YTD: 0.78%
Active Trend Trading’s Yearly Objectives:
– Yearly Return of 40%
– 60% Winning Trades
– Early Warning Alert Target Yearly Return = 15% or better
For a complete view of specific trades closed visit the website at: https://activetrendtrading.com/current-positions/
Updated first full week of each month. The next update after first week in January.
Outs & Ins: Five stocks debuted on the IB 50 this past week. BC, CFR, LRCX, MBLY and TCBI. For those who follow the IBD 50 you should recognize LRCX, CFR and MBLY list in the past. None of the added stocks floated to the top of the Fundamental Strength sort.
The Best of the Best from this weekend’s sort include IDCC, THO, CPE, NVDA, ESNT, GRUB and AMAT. GRUB and AMAT are new to the top list. IDCC, THO, CPE and NVDA are potentially strong candidates on proper pullbacks or consolidation patterns.
Share Your Success: Many of you have sent me notes regarding the success you are having with the Active Trend Trading System. Please send your stories to me at dww@activetrendtrading.com or leave a post on the website. Thanks.
