Art & Science of Active Trend Trading–Free Report Jan 3

Good Day Traders,

Overview & Highlights: Our strong trading success over the last 4 months of 2015 provides a perfect picture why succeeding as in trading can be so frustrating. Primarily for those around us. Trading is much like having a commission’s job, sometimes there are great months and other times there months with no income. Getting use to this up and down in cash flow can be a lot to adjust to if a nice steady paycheck has been direct deposited every 2 weeks.

During 2015 we put a lot of pieces together for the ATTS members and in 2016 I look forward to strengthening and starting up where 2015 finished.

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, Jan 8th

Register Here: https://attendee.gotowebinar.com/register/1834056135396942337

Next Training Webinar: Jan 5th

For Premium Members our Wednesday evening training is developing some fantastic traders!

Mid-Week Market Sanity Check Topic: 2016 Training Syllabus & Being Prepared for the Drop

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Managing Existing Trades: Other than a short TSLA put I’m flat the market. I want to establish my Strategy III index ETF position either this week. With only 4 days left to trade for 2015 I will need a very compelling setup to go long any stock position at this point.

Strategy I Portfolio Building: No Open Trades

Strategy II Income Generation: No Open Trades

Strategy III Wealth & Income Generation Trades: This week I’ll be setting up the Index ETF Straddle for Trade 1 of this Strategy. For the TSLA position I’ll recalculate the weekly premium objective for the year and post this to members who are following these special trades.

Trade 1: Will open either a SPY or IWM Jan 217 Call/Put Straddle to sell weekly premium against this week. Currently SPY closed at 203.87 a Jan17 205C and a Jan17 200P may provide a good pairing moving into the 2016.

Trade 2: Long TSLA Jan17 250C & Long Jan17 220P—I will re-evaluate weekly premium objectives and send an email to Special Trade members with my new weekly objectives.

  • Last week’s trade: Bought back the 1 contract of TSLA Dec5 227.5P at 0.75 thus profiting $2.10 from selling at 2.85. This netted $210 profit per contract.

 

Several members have asked about this strategy and a more detailed explanation is available at: http://activetrendtrading.com/wealth-and-income-strategy/ .

I posted a video about how to choose the weekly options to short for this strategy. It can be viewed at: http://activetrendtrading.com/videos/

The Early Warning Alert Service has hit all seven major market trading points this year. See this brief update video for more details: Early Warning Alerts Update Video or at https://youtu.be/aVE9zqbG4MQ

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/


General Market Observation: Over the last 4 weeks the weekly charts on each of the three Tracking Indexes have provided the most interesting perspective and the last week of 2015 has provided nothing to change this view. The SPX weekly chart below looks like the path of least resistance is—down. Each of the indexes have strong identifiable levels of support and resistance. The SPX resistance zone covers from the 2080 to the 2134 level. This current resistance zone has been the cap on the S&P for the past 14 months. Support wise there are couple of levels to watch. If weakness and volatility increases on the S&P watch for quick and violent moves down to below levels of 2000, 1950 and 1870. The basics for trading SPX is to wait for stronger levels of support and stronger levels of resistance and trade from those levels in the appropriate direction.

The same exercise can be done for NDX and RUT. Then a traders can choose which trades fit your trading objectives. Each of the index ETF’s are moving within well-defined trade ranges which can provide profitable trading opportunities.

SPX 12-31

SPX: Downside Market Short the SPY or SPY Puts. Preferred ETF’s: SPY, UPRO and SPXL

NDX: Downside Market Short the QQQ or QQQ Puts. Preferred ETF’s: QQQ and TQQQ

RUT: Downside Market Short the IWM or IWM Puts. Preferred ETF’s: IWM and TNA


 

The Early Warning Alert Service has hit all seven major market trading point this year. See the updated video at: http://activetrendtrading.com/early-warning-alerts-2/

 

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/

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 Jan 8, 2016

Register Here: https://attendee.gotowebinar.com/register/1834056135396942337

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

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Index Returns YTD 2015

Index YTD 2015

 

ATTS Returns for 2015 through Dec 31, 2015

6% Invested holding position for Strategy III Position

Margin Account = +15.6%. See chart below for monthly tracking.

ATTS Cum Chart 2015

 

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.

 

Early Warning Alerts = 15.54% Partial Positions;

29.05% Full Positions

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For our all Active Trend Trading Members here’s how we utilize our trading capital

Trading Capital Setup and Position Sizing: Every year we start the year off trading a $100K margin account split up into the three strategies used with the Active Trend Trading System.

  • Each trader must define their own trading capital in order to properly size trade positions to meet their own risk tolerance level!

 

    • Strategy I: Capital Growth—70% of capital which equates to $140K at full margin. This strategy trades IBD Quality Growth Stocks and Index ETFs. Growth Target 40% per year.
    • Strategy II: Short Term Income or Cash Flow—10% of capital or $10K. This strategy focuses on trading options on stocks and ETF’s identified in Strategy I. The $10K will be divided into $2K units per trade.
    • Strategy III: Combination of Growth and Income—20% of capital or $20K. This strategy will use LEAPS options as a foundation to sell weekly option positions with the intent of covering cost of long LEAPS plus growth and income.
  • The $70K Strategy I portion of the trade account is split between up to 4 stocks and potentially a leveraged Index ETF. Actual number of shares will vary of course depending on price of the entity traded and amount of margin available. We have found that limiting open positions to only 5 entities greatly reduces the trade management time requirements for members.

 

  • Naked Puts or short term options strategies will be used occasionally for Income Generating Positions
  • None of the trade setups are recommendations to trade only notification of planned trades from set ups using the Active Trend Trading System. Each trader is responsible for establishing their own appropriate risk level if they decide to parallel trade.
  • The Active Trend Trading System objective is to provide a clear and simple system designed for members who work full time.

Outs & Ins: ITC is the final stock making a debut to the IBD 50 list for 2015. Today’s list will also become the first list for 2016. The first IBD 50 of 2015 provided another excellent data point to my study going back to 2007 focusing on the first IBD 50 list of the year. I’ll go over my results with members later this week.

in-out 12-31

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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