Art & Science of Active Trend Trading Free Report April 12, 2015

Good Day Traders,

Thanks for all the great comments about the ATTS service and the “How to Make Money Trading Stocks” webinar that blast out every Friday at 10 a.m. Pacific.  You can either join live of catch the replay on YouTube.

Here’s the link for next Friday’s Show:  https://attendee.gotowebinar.com/register/3754695135697139458

The Mid-Week Market Sanity Check is back this Wednesday evening.   Our Topic:  How to be Sure you’re on the Right Side of the Trend:  Intro to a New Moving Average

The integration of the Hull Moving Average into the Active Trend Trading System adds additional valuable clues that will provide more timely entries, exits and holds.


General Market Observation:   The buyers won the week last week and drug the Indexes higher towards strong resistance.  It is a challenge to not argue with the market because the internals are pretty weak but the price is still pushing up.  Because both the SPX and NDX are weighted averages a few stocks can keep them on their upward trajectory but eventually gravity will take over if the leaders start stalling.  It will be interesting to observe what takes place when prices do reach the established resistance zones.  Will we see a flame out or are there enough fumes to make it to a higher altitude?

SPX:  The resistance zone on the S&P starts at 2104 and runs up to 2120.  While Thursday and Friday’s candlesticks were bullish and other indicators are looking positive there is still some lingering negative divergence on weekly charts.   The chart below highlights several areas to watch next week.  First if price goes into the resistance zone identified by the green rectangle directly off of Friday’s price action then watch for reversal signals.  If price first moves back down to around the 2087 level to the 8, 20 or 50 day moving average then watch for a potential bounce.  Since the beginning of the year there has been only one series of 3 weeks up in a row.  Last week was the second week up in a row so if the Index’s personality has not changed then this week could be a toss-up week regarding direction.  I will place price alerts on then SPX or SPY at the bottom, top and middle of the green rectangle and then act if one of those alerts is triggered.

Preferred ETF’s to trade will be SPY and/or SPXL.

SPX 4-6

 

NDX:  One can draw a similar resistance rectangle on the NASDAQ 100 chart with the resistance zone starting at 4428 and ending at 4483.  There is also a support level at 4288ish level that defines a larger horizontal trading range that is in play if the Index continues to move sideways.

Preferred ETF’s for the NDX are either QQQ or TQQQ.

RUT:  The Russell is the “most likely” index.  What I mean is it is closer to resistance at this year’s high and is showing the type of hesitation candlesticks.  A failure at or near the 1267 level  may provide a set up for a downside trade that could bounce down the stairs of support formed about every ten points down to about 1230.

Preferred ETF’s are IWM or TNA.

On each of the Index ETF’s if I’m trading to the downside it will be with the non-leveraged ETFs.

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If you have not had a chance to check out the research Mike Trager and I have done to start the EWA service you can find a short 10 minute preview at: http://youtu.be/MgC9GMAWh4w

If simplifying your life by trading along with us using the index ETF is of interest you can get the full background video at: http://activetrendtrading.com/etf-early-warning-alerts-video/

Remember if you are a premium or Early Warning Alert member you can receive Text Alerts and Trade Notifications if you send us your mobile phone number. Sent us your number with NO HYPHENS please and we’ll get you on the Text Notification List.

The How to Make Money Trading Stock Show—Free Webinar every Friday at 10 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.

The “How to Make Money Trading Stocks” Show is back this Friday, April 17th

Ensure you get a seat by registering now at:

https://attendee.gotowebinar.com/register/3754695135697139458  

 

To get notifications of the newly recorded and posted Market Stock Talk every week subscribe at the Market Tech Talk Channel: https://www.youtube.com/channel/UCLK-GdCSCGTo5IN2hvuDP0w

 

 

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ATTS Returns for 2015 through April 10, 2015

Margin Account:  Invested = In Cash

Margin Account = +0.0%

Early Warning Alerts = +2.70%

Active Trend Trading’s Yearly Objectives:
– Yearly Return of 40%
– 60% Winning Trades
For a complete view of specific trades closed visit the website at: http://activetrendtrading.com/current-positions/

Updated at the beginning of each month.

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Outs & Ins:   SONC and TSO were added the IBD 50 this weekend.  SONC looks to be recovering from a big selloff after earnings.  It is currently attempting to rebound from a support zone around the 50 day moving average.  TSO is at support just below the 50 day moving average.  From an alternative entry view TSO is just about buyable if 84.68 holds!

In-Out 4-2


 

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

wallstreet


Off the Wall:   Perhaps it would pay each of us to pay greater attention to the cumulative effects of small disciplines or lack of discipline in our lives.  A couple of weeks ago Facebook sent me a photo I posted 5 years ago.  When I looked at the photo it showed me a picture of me that was in a lot better shape than I am today.  Comparing the “me” of today with the “me” from 5 years ago shows the cumulative effect of negligence in my fitness program.  About 20 pounds heavier or actually more than that after all don’t we always tell little white lies about how much we really weigh?   The sneaky thing about cumulative effects is that on a day-to-day basis we really don’t notice, but given enough time and they just show up!  This cumulative effect happens whether the habits are healthy or unhealthy.

The exercise of becoming a wise and disciplined trader is also subject to the cumulative effect of a trader’s action or lack thereof.  We want to be great traders but are we willing to do the little things in a routine manner that help us over time arrive at being a wise and disciplined trader?  Just like a physical fitness effort the best results are obtained when one does a little on a regular schedule and sticks with it.  What kind of trader would you be if you committed to following a healthy routine five days a week for 90 days?  Would you be closer to achieving your goals as a trader?  I bet you would!  

 


 

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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