Art & Science of Active Trend Trading–Free Report 8-24-14

Good Day Traders,

Congratulation members, you’ve just about made it through the doldrums of summer and now we get ready for the excitement of finishing the year strong. We’ve just seen a big move in most of the Indexes, now do we correct a bit and then rally into year end? We shall see!

It’s almost time to kick-off “How to Make Money Trading Stocks—Market Stock Talk Show” live every Friday—we have some great new topics coming down stream through the rest of the year. Remember bring your stocks, bring your questions and bring your friends to “How to Make Money Trading Stocks” every Friday. To get notification of the newly recorded and posted Market Stock Talk during the month of August just subscribe at the Market Tech Talk Channel: https://www.youtube.com/channel/UCLK-GdCSCGTo5IN2hvuDP0w

Additionally, please give David & me some “Thumbs Up” Likes and leave comments on the Market Tech Talk YouTube Channel we would really appreciate the gesture. If you share the site it would be even better! Thanks ahead of time.


 

General Market Observation:  As we move into the last week before the Labor Day weekend be aware that this week tends to have a upward bias and can be volatile since many of the institutional traders will be away from their desk. This doesn’t mean that there will not be opportunities on individual stocks but we could see movements exaggerated due to news driven events.

SPX:  Friday’s action provided a bearish reversal Dark Cloud candlestick pattern for the SPX right at resistance at 1991. Price action is still working with in a very well defined trend channel. Price is extended away from the 8, 20 & 50 day moving averages so while this and the bearish reversal signal may impede upward momentum a strong reversal is not being signaled at this time. A close above Thursday’s high will void the Bearish Dark Cloud pattern. Secondary oscillator show that we are at over bought conditions, but this does not mean higher is impossible.

SPX 8-24Click to Enlarge

Nasdaq:  Last week NDX provide a good break out and Friday put in a Doji at 4052 which may be a new resistance level. It too shows signs that momentum may be waning, but may have enough momentum to continue the upward push for a bit more. Looking at how far prices have advanced from the 20 day SMA reveals that it is extended more than usual from this moving average, so a pause may be in the offing.

 

RUT:   The Russell has run into hard resistance at the 1163 level and has made two unsuccessful assaults to break through. With the moving averages starting to turn more positive a breakout above 1163 may be a clue that a return to the 1200 area may take place. For those trading TNA, watch for retreats to the 8 day EMA intraday may provide an opportunity to go long for a quick move up. We’ll post an alert if this takes place.


Summary of Closed Trades:

Closed Income Generating Trade on WABU for a gain of $3.43 per share on 150 share totaling Cash Flow = $514.50 for the week.

Cumulative Profit/Loss June through August 24th
Income Generating Trades Closed = + $ 6577.00
Capital Growth Trades Closed = + $ 2155.50
Total Profit/Loss Month to Date = + $ 8732.50

 

Total Booked Profits since June 1 when the timing service began: $8.73K

Margin Account Up 23.8% YTD
IRA Account Up 39.8% YTD

For a complete view of specific trades closed visit the website at: http://activetrendtrading.com/current-positions/


 

Summary of Open Trades:

Open 8-24Click to Enlarge


Outs & Ins:  No new entities added to the list this weekend, just musical chairs with stocks that have been on the IBD 50 earlier in the year. Probably the biggest stock to watch this week is QIHU which reports earnings, BMO on 8-25 which is Monday!

Many of the thumbnail charts in the paper showed defined entry points on several stocks. These include THRM, ATHM, UBNT, STZ, TMH, APC and AMBA. While I personally do not trade breakouts that often, when the paper has so many identified it is a great way to get your feet wet with a well-defined entry and known stop loss of 7%. At this point in the market I would not open a full position based off a breakout.

O-I 8-24


 

Comments and opinions written below this line of text may be provocative and only obliquely related to trading. Some may find these “Off the Wall” comments challenging to their outlook on life. I will not post any comments made on subject matter below this line, so if you disagree blast away.

OFF THE WALL

Main Wall
Off the Wall:  Trading is a metaphor for life! One of my early trading mentors use to say this all the time as he passed on the wisdom he had earned through years of trading. Now that I’ve got a lot of years under my belt both in trading and in life, I agree with this statement. I think recognizing and accepting this comparison is important to making real progress as a trader, especially if one desires to be an exceptional trader! The folks who want to be exceptional both at life and as a trader must do things different than those who merely want to exist. In trading there are no wards of the state!

Trading is a great equalizer that tends to reward those who best master themselves. During any trading day, week or month trading reveals the both the strengths and weakness of the person. For some this revelation is met by denial and little progress in becoming an exceptional trader. What I’ve noticed in my own development as a trader when I deny there is a weakness in my trading it is also a reflection of a weakness in the rest of my life. If I’m impulsive in a trade I tend to be impulsive in other life decisions. If I’m undisciplined in my trading, I tend to be undisciplined in other areas of my life. The thing is that some of these weaknesses have become the master of their own universe inside my life. They keep me from arriving at exceptional! The first step towards fulfilling your destiny as a trade is to desire to be exceptional if this hangs you up and you are not willing to work on this identity…there’s always mutual funds.

 

 
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!

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