Good Day Traders,
During month of June Active Trend Trading will continue to focus on great training and trading triggers and will be adding some additional opportunities and tracking for our three focus strategies. I will be prepare a training video on what this will look like during the month. The objective at the end of June will be to understand how the three focus strategies tie into the ATTS system. By providing focus on each it will open up additional trading opportunities in any type of market condition. The focus will always be on the system, but how the system connects to the wealth and income generating will be expand our trading potential going forward. The following diagram provides a peak at what this will look like.
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. Please let others know about this great webinar! You can either join live or catch the replay on YouTube.
Here’s the link for next Friday’s Show: https://attendee.gotowebinar.com/register/2407143581538104321
For Premium Members our Wednesday evening training is developing some fantastic traders!
Mid-Week Market Sanity Check Topic: The Psychology of You: How it helps and how it hurts your trading
General Market Observation: I know we’ve been talking a lot about how the market internals are looking weak and that we anticipate a strong correction sometime over the next 18 months. Folks remember this is an only an opinion based on the clues we see coming together. Trading the individual indexes has been tough this year because of the directionless nature of the day-to-day movements. So fight hard the notion of putting on a bearish bias at this point because if we do we will miss many great upside trades of both long and short term duration.
Friday’s market action was mixed! In fact the weekly action was mixed with two of the tracking indexes down and one of them up. The indexes are still demonstrating a range bound character so trades from support to resistance and from resistance to support are in order. Expect to see a few more index ETF trade alerts this week and these may come very quick when appropriate. These alerts and trades will be for the more aggressive traders. You can help be ready by knowing where support and resistance is and the reviewing where you will enter and exit. With range bound moves being able to carve 50-70% out of the middle of the range is great.
SPX: The S&P is the weakest of the indexes this past week. The good news is that it appears to be finding support at the 100 day EMA and a short term up trending support line as seen in the chart. If this support fails then price action may begin a step down process towards the 200 day moving averages or 40 week moving averages. Depending on timeframe for the move the 200 day and the lower support line of the uptrend channel may serve as the strongest support zone. It is good planning to place alerts at these various support lines and because this may be the level where a tradable bounce may occur.
Preferred ETF’s: SPY and SPXL
NDX: Weakening but stronger than the S&P. Note that on the weekly chart last week’s candle was a bearish engulfing pattern! Right now price is finding support at 4453 which is approximately the 50 day EMA. Like the S&P a short term uptrend support lines can be drawn across the lows going back to 4/6/15. Each of the past touches since then resulted in moving to a new high except the last one! The NASDAQ 100 may be in the process of redefining its character to at least move back into well-defined range bound price action.
Preferred ETF’s: QQQ and TQQQ
RUT: This is the index that several analyst were heralding as the “one day” reversal king on Friday. I’m not ready to jump on that claim, but the Russell was the strongest of the indexes we track. At this point price action is locked in a price ranges between 1211 and 1278 which equates to a 5.5% range. This range makes the index ETF’s for RUT very attractive for SHORT TERM trades. IWM has great options and TNA provide excellent moves both daily and weekly if traded off the correct levels. For members who do not like these short term trade then stand aside and wait for solid reversals off of stronger levels of support and resistance. When designing your trades wait for the bounce off support and then planned to take profits slightly short of resistance. Reverse this for order for bearish trades. Think of this as a “toll booth” trade with support being one booth and resistance being the other booth. We are attempting to extract a toll on each side.
Preferred ETF’s: IWM and TNA
The Early Warning Alert Service has hit all three major market trading point this year. See this brief update video for more details: https://youtu.be/PRLmPQLHjiI
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 is back this Friday, June 12th
Ensure you get a seat by registering now at:
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/
ATTS Returns for 2015 through June 5, 2015
Less than 18.9 % Invested
Margin Account = +2.93 % (Includes profit in open positions)
Early Warning Alerts = +5.32%
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.
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 make the math really easy for yearly returns.
- Each trader must define their own trading capital in order to properly size trade positions to their own risk tolerance level!
- The $100K account is split between up to 4 stocks and a leveraged Index ETF. Actual number of shares will vary of course depending on price of the entity traded. We have found that limiting open positions to only 5 entities greatly reduces the trade management time requirements for members. This goes back to our goals of providing a system designed for members who work full time.
- Regardless of market conditions no more than 50% of available margin is used at any time.
- Each Trade is split 50-50 between Income Generating & Capital Growth Objectives unless specified in the Order Alert
- Naked Puts or short term options strategies will be used occasionally for Income Generating Positions
- None of the trade setups are a recommendation 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 on every trade.
Managing Existing Trades: Currently open in two positions.
ARRS: This is turning out to be trade to perfect our patience! I’m going to slightly modify T1 in this trade to coincide with approximately the 62.8% Fibonacci retracement. This will place T1 at 35.50. The major reason for dropping T1 slightly is because volume is not showing up as price action is starting up the right side of the cup. The stop loss will now be modified to the 8 day EMA rule which will better protect capital.
YY: We entered a half position on Friday at 65.85 and price exploded and broke out. T1= 69 was hit within the morning trading hours which equated to a bit over 5% of booked profit. Volume was huge so this may be the beginning a solid move higher. Check out the weekly chart and see how potentially early we have caught this move. Earlier in the year we did very well trading YY so we’ll look to add to those profits. Next resistance is between 74.00-76.50 but we will apply the 8 day EMA Rule for now to protect profits. Additionally because of Friday’s strong move this may turn into a longer term holding and we will build a larger position. Longer term potential target is at the 90.00 zone.
Special Trades: No current option trades.
Additionally some of these trade may be selling weekly puts on up trending stocks. If you are interested in parallel trading this strategy register at this link: http://forms.aweber.com/form/99/1278533099.htm
Pre-Earnings Trade: Three interesting targets: AKRX, KMX and MEI. AKRX looks primed for a pre-earnings run. Earnings are 6-16 BMO.
Potential Set Ups for this week: We have a target rich environment this week primarily of stocks setting up for upside moves. The key is wait for the proper entry action point that has been identified by your analysis and trade design.
Upside: CYBR broke out of a triangle on Friday look for a pull back into Friday’s candle. Others upsiders include: SWKS, CAVM, XRS, QIHU, YY, CUDA, NKTR (sleeper) and TASR.
Downside: Wait for the set ups on GMCR and CRUS.
Toss Ups: These are basing and could go either way. They are: VIPS, BITA, FLT, HABT, ALK (nice range bound stock) and BABA.
Leveraged Index ETFs: Currently waiting for a new signal.
Off the Wall: No Off the Wall today.
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 firstname.lastname@example.org or leave a post on the website. Thanks.
Outs & Ins: ANET, MENT and NSR make their debut on the IBD 50 this weekend. ANET had a great week breaking out from a little cup like pattern. This stock may have some promise because it is very early in a new uptrend. NSR is also early coming out of a bottoming pattern! Being able to get in to these stocks early after a significant bottom episode can lead to excellent runs market permitting.
Individual stocks on the IBD 50 are performing better than the indexes so keep your eye out for entry patterns over the next several days. Of particular interest are AKRX, KMX, and MEI. Each of these stocks report earnings in June.