Art & Science of Active Trend Trading Free Report May 30

Good Day Traders,

Overview & Highlights: Hope all are having a great Memorial Day weekend! Many of you know that I’m moving back to Hawaii after being in California for the past 12 years. We lived in Hawaii for 14 years prior to coming back to the mainland so for us this is going home. I will be in transit through June 7th. Webinar’s will start again on June 8th live from Hawaii. While in transition I will lightly trade great set ups and continue to manage existing positions. One of the things I’ve learned over the years of trading, is if there is a potential distraction such as a vacation or moving—limit downside exposure by setting in protective stops. Secondly be very careful initiating new positions because of distractions. Once settled in back home the time difference will allow me more analysis time and members will start to see more after-hour alerts. This is a good thing!

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.

1 sample table

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


Managing Existing Trades: Positions open for 3 strategies.

Strategy I Portfolio Building: Long 100 shares of TZA

Bought 200 shares of TZA at 41.60
T1 = 5% -10% to close 100 Shares
T2 = Attempt to hold remaining shares until July 1st

Stop Loss = Will hold and sell weekly covered calls on remaining position to reduce cost basis while waiting for the Market downturn. Will hold until July 1st
Hit T1 sold 100 shares at 43.79 for a gain of 5.26% or Profit of $219.00


General Market Observation: Last week the Indexes thumbed their collective noses at the potential of rate hike in June. After putting in a daily Bearish Harami on Monday, all three Tracking Indexes pushed out of short term resistance formed by either a downward or horizontal channel. On the daily chart of the SPX there is a new measured target for the SPX at the 2111 level. This level was established by measuring the width of the channel and then adding it to the breakout level from Tuesday’s price action. I am always intrigued by how these measured move so often coincide with past levels depicted by swing highs or swing lows.

My big question as we finish May trading on Tuesday and move into June is, will the Indexes move into a holding pattern until the Fed meeting mid-month or will the current tailwind provide enough momentum to push close to last year’s highs? Several scenarios could work out going forward. First the swing low on 4/20 now represents a potential higher low. This is the first ingredient needed to move back into an uptrend. If the swing high of 5/10 is taken out the Index would be in a new short term uptrend and increase the probabilities that the highs from last year will be challenged. As is evident from the chart price action is swinging quickly from oversold to overbought conditions when assessed by the distance from the 8 and 20 day EMA’s. With neither of these moving averages providing solid support nor resistance we must look at support and resistance formed by past price action. It seems that buyers and sellers are zeroing in on these levels to take action. At this point we must wait for a pullback for potential upside trades and bounces from stronger resistance to plan downside trades.

The NDX and RUT provide a similar view. The NDX broke from a horizontal channel and the RUT broke from a downward sloping channel. Price projections on both take current price back into resistance formed by the swing highs from mid-April. Looking for pullbacks for upside trades and stalling at established resistance for potential downside trades.

SPX 5-27

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/c/MarketTechTalk

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

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.

Index YTD 5-27

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.

ATTS YTD 5-27

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

ATTS YTD 5-27a

Current Strategy Performance YTD (Closed Trades)
Strategy I: Down -1189.45 or -1.19%
Strategy II: Up $2155 or 21.5%
Strategy III: Up $11526 or +57.6%
Cumulative YTD: 12.49%

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: There are no new stocks debuting on the IBD 50 this week. Potential candidates this week. Downside: None. Upside: COR, CTXS, CBM, BGS, INCR & IPHI. Pre-Earnings: AVGO, THO, PLAY & FIVE.

In-Out 5-28

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.comor leave a post on the website. Thanks.

 

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