Art & Science of Trend Trading Free Report 5-15

Good Day Traders,

Overview & Highlights: The Indexes are on the ledge and if symmetry within the established downtrend channel is maintained this ledge may be slippery. Secondly, I’m working on a new layout for the weekly potential trades that will help all members plan their trades and be less dependent on the text and email alerts. Look for the update within the next 4-5 weeks.

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, May 20th

Register Here: https://attendee.gotowebinar.com/register/5054701618110893827

Note this session will be at: 11:30 a.m. PDT

 

Next Training Webinar: May 18th

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

Mid-Week Market Sanity Check Topic: Intraday Charts for After Hour Analysis-Conclusion


General Market Observation: The upcoming week is monthly option expiration week and tends to have a positive bias. The question which side will win the battle, buyers or sellers moving into this week. Earnings season is winding down with a few retailers still to report so what might propel the Indexes this week? Home starts and sales? Manufacturing news or CPI? We know that each Index starts this week sitting close to support after moving down on Friday. Give that each of the three Tracking Indexes are working within the confines of lower highs and lower lows perhaps a follow through to the downside will take place. The S&P is just at the 50 day EMA but below the 8/20 daily EMA’s. The NDX looks weaker and is now below all of the primary moving averages. The Russell came to rest at the 100 day moving average which is still below the 200 day moving average. If price action deteriorates further, we could see each of the Indexes use the current support as a ledge to leap from.

This is very evident on the Russell weekly chart below. Like the other Tracking Indexes the TSI and Momentum have turned negative perhaps providing a clue to additional downside. The 20 week moving average (approximately equal to the 100 day) provides an excellent level of support. If this support is broken this will be my line of demarcation for downside trades. This coincides with the 1100 level which served as both support and resistance during past gyrations. If the RUT falls look for the other Indexes to follow suit.

For the week I will trade any rebound back into the moving averages as a downside opportunity. If we break below the current support could also provide a downside trade. Lay your Fibonacci Retracement from the low in February to the high in April to see potential downside targets and levels where bounces may take place. On the RUT the 38.2% retracement is at the 1074 level or about 2.5% below Friday’s close.

RUT Wkly 5-13

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, May 20th

Register Here: https://attendee.gotowebinar.com/register/5054701618110893827

Note this session will be at: 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: 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. Note both DJI & SPX are barely in positive territory for 2016, but NDX and COMP are looking weak!

Index 5-13

 

ATTS Returns for 2016 through May 6, 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 5-13

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

ATTS YTD 5-13a

Current Strategy Performance YTD (Closed Trades)
Strategy I: Down -1408.45 or -1.41%
Strategy II: Up $1687 or +16.87%
Strategy III: Up $10640 or +53.2%
Cumulative YTD: +10.9%

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: EA makes its debut on the IBD 50 this week. It has gapped up to resistance after earnings last week. EA has been in a consolidation pattern for the last 11 months. The gap up was on solid volume so maybe worth watching.

I’ve said many times one of the reasons I like the IBD 50 and then tracking all the stocks that appear there for the year is that not only does it provide an excellent list of stocks that have passed stringent fundamental test but it also works well when the markets start to falter. Growth stocks tend to go up and fall faster than non-growth stocks. So the IBD 50 and my Running List provides a great stable of candidate for all market conditions.

Potential candidates this week. Downside: AYI, EW, MAS, THO & SONC. Upside: LGND, NVDA & NTES. Pre-Earnings: SWHC, PLAY & VEEV.

In-Out 5-13

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.com or leave a post on the website. Thanks.

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