Art & Science of Active Trend Trading Free Report 5-6

Only for the Month of May:  One Month Trial Membership details HERE or
go to this link:  http://activetrendtrading.com/atts-trial/


Good Day Traders,

Overview & Highlights: Watch for slight modification in Alerts for Strategy I orders. I will slightly widen the entry price range targets. This should result in increased entry opportunities to members parallel trading with the Active Trend Trading System.

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.

How to Make Money Trading Stocks on Friday, May 13th
Register Here: https://attendee.gotowebinar.com/register/3775812364688126979
Note this session will be at: 11:30 a.m. PDT

Next Training Webinar: May 11th
For Premium Members our Wednesday evening training is developing some fantastic traders!
Mid-Week Market Sanity Check Topic: Foundation Set Up for Strategy III


General Market Observation: Each of the three Tracking Indexes are showing mixed signals between daily and weekly charts. The daily charts look ready for a bounce while the weekly charts look to be preparing to roll over. One thing for sure is that we have well defined levels of support and resistance to plan around. The Indicators are also mixed with the TSI on the weekly charts having crossed to the downside and the TSI on the daily looking ready to cross up. One of the things that leads me to believe at least a brief bounce will take place this week is how weekly Momentum actually increased while prices fell for the week on weekly charts of each Index. This is subtle but shows that buyers may fight to hold ground. Secondly the level of Puts outstanding has increased to extremes. When the Put/Call ratio gets out of balance in either direction it tells us the market is out of balance and a turn in the opposite direction is close. The Put/Call ratio closed the week near highs which tends to translate to a bounce in the Indexes.

The challenge for traders seeking to trade the Index ETFs is that much of the movement in the Indexes has been going on after normal market hours. Currently the RUT is holding up better than the other two indexes. If one is looking to get long one of the Indexes the RUT via IWM or TNA may be your best opportunity if price cooperates and provide a bounce at support.

The issue for each of the Indexes is that while they appear ready to bounce on daily charts, each would be bouncing into resistance formed by either downtrend resistance lines or moving averages. The bounce into these areas may provide the opportunity for downside exposure through either Puts, shorting the non-leveraged ETF’s or trading the leveraged inverse ETFs. These levels are evident on the SPX daily chart below. Price is currently at support of 2042 with resistance coming into play at the 2075 and 2100 levels. Plan directional trades at these levels of resistance and support.

Spy 5-6

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 11:30 a.m. PDT. I’m looking for the best time to offer this webinar. I want to try closer to the close on Friday to see how that works out for potential trades going into the close. 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, May 13th
Register Here: https://attendee.gotowebinar.com/register/3775812364688126979
Note this session will be at: 11:30 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/channel/UCLK-GdCSCGTo5IN2hvuDP0w

The Active Trend Trader Referral Affiliate Program is ready. For more information or to become an Affiliate please register here: http://activetrendtrading.com/affiliates-sign-up-and-login/


Index Returns YTD 2016

I’ve added a column to the Index YTD performance chart. The column on the far right shows the depth of the current correction with respect to the highs of the top from 2015. Note both DJI & SPX are positive territory for 2016, but NDX and COMP are looking weak!

Index 5-6

 

ATTS Returns for 2016 through May 6, 2016

I’m pleased how the ATTS system has shown growth every month of the year thus far. We are managing Strategy I which encompasses portfolio building well because thus far this year it has not been a great portfolio building year. The quick hitting option trades of Strategy II are working along with the steady Income & Wealth objective of Strategy III.

ATTS YTD 5-6

Percent invested $100K account: Strategies I & II invested at 3%; Strategy III invested at 20%.

ATTS YTD 5-6a

Current Strategy Performance YTD (Closed Trades)
Strategy I: Down -844.05 or -0.84%
Strategy II: Up $1687 or 16.87%
Strategy III: Up $9338 or +46.7%
Cumulative YTD: 10.2%

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: http://activetrendtrading.com/current-positions/

Updated first full week of each month.


Outs & Ins: CRTO, MHK and ZBH make their debuts to the IBD50 this weekend. Of the three stocks both CRTO and ZBH look the most promising. Watch for bounces from the 8 day EMA on all three for potential entries if the market strengthens.

Of the remaining IBD50 stocks many are already past earnings so if the market strengthens there may be some long side opportunities. The following have pulled back into support and may provide upside potential of 5% or more. USCR, CTXS, GPN, CBM, MAS, MSCI, HAS and AOS. AOS looks like a very good candidate.

Keep in mind that if the market is rebounding only as a relief rally any long trade may quickly be stopped out. When your trade is up 5% set a trailing stop at 1% to assure you get out with some profits. This is clearly a base hit kind of market to the upside.

In-Out 5-6

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 mailto:dww@activetrendtrading.com or leave a post on the website. Thanks.

Bookmark the permalink.

Comments are closed