Good Day Traders,
Overview & Highlights: I will be flying to our old home in Hawaii this week, so this weekend’s report will be shorter than usual. I am interested in opening two positions on Monday. The TSLA trade below and a small position in SIX. The mid-week training and Friday webinars will resume this week for our members. As you know Strategy III is doing very well for the year and with the potential of volatility increasing through the remainder of the year, I will add an additional long TSLA 17Jan Call & Put Strangle thus increasing the amount of weekly premium I will collect. For premium members the details of the expected trade are provided at the bottom of the Strategy III section. The TSLA trade is up over 57% since it was opened at the end of September last year.
Here is a sample of the weekly stock update I’m working on which will list the stock or ETF along with detail about where to execute a trade. This sample is not a recommendation just a sample of the format I’ll use. My intention is to post a simple table like this providing the basics so members can be better prepared for the week. Member’s feedback would be appreciated.
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, June 10th
Register Here: https://attendee.gotowebinar.com/register/6740381586676275713
11:30 a.m. PDT
Next Training Webinar: June 8th
For Premium Members our Wednesday evening training is developing some fantastic traders!
Mid-Week Market Sanity Check Topic: Is it Me? Trading Psychology
General Market Observation: Two weeks ago the Tracking Index bounced and ran up hard for a week and then the SPX and NDX spent last week moving sideways just below strong resistance. The RUT pushed higher until finally slowing down on Friday. Both the NDX and SPX look like a pullback is in the offing and may take place this week. With the extremely poor Jobs Report Friday the odds of the Fed raising rates at the next meeting have dramatically diminished despite the saber rattling over the last few weeks by the Fed Presidents!
The Fed meeting is a wild card because now the potential of negative interest rates may come into play. Is it even legal for the Fed to go to a negative interest rate? Regardless the minor rise in rates last December provides at least one silver bullet and there is a potential of more QE. Either of these action would potentially provide a path for easy money that could continue propping up the market. At present the Fear Index as measured by the VIX is remaining low so the bias for the market remains up even if we get a 2-5% pullback between now and the Fed meeting.
At this point the Indexes and several stocks have had a great two week run, which may start coming under pressure requiring a reversion to the mean of the moving averages.
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, June 10th
Register Here: https://attendee.gotowebinar.com/register/6740381586676275713
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: https://activetrendtrading.com/affiliates-sign-up-and-login/
Index Returns YTD 2016
If the Indexes are slipping off the ledge we could see a retracement to yearly lows in the short term of a few weeks. DJI, SPX and RUT have pushed into positive territory for the year. NDX and COMP made progress for the week but are still negative for the year.
ATTS Returns for 2016 through May 27, 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.
Percent invested $100K account: Strategies I & II invested at 3%; Strategy III invested at 20%.
Current Strategy Performance YTD (Closed Trades)
Strategy I: Down -1189.45 or -1.6%
Strategy II: Up $1695 or 16.95%
Strategy III: Up $11526 or +63.4%
Cumulative YTD: 13.2%
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: https://activetrendtrading.com/current-positions/
Updated first full week of each month.
Outs & Ins: PRI was added to the IBD 50 this weekend.
Most of the stocks on the list look ready for a pullback or consolidation. Potential candidates this week. Downside: SWHC. Upside: EW, FB & AVGO. Pre-Earnings: INCR
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.
