Art & Science of Active Trend Trading April 22nd

April 22, 2018

Good Day Traders,

The indexes showed that the current up cycle may be timing out.  Price continues to churn between various levels of overhead sellers and support buyers.  Prices  last week pushed higher and then reversed lower on Thursday and Friday.  Daily charts show a lower high in place with the True Strength Index rolling over and crossing to the downside.  Are we going back to previous support lows?  We shall see.  Observations of past times the TSI has crossed on the daily chart since November reveals that a cross typically proceeds weakness that last 7 days or longer.  If the indexes repeat similar price action to past crosses we use any pull up to the 8/20/50 day EMA combos as a chance to trade to the downside or trade one of the Inverse Index ETFs.  The daily NDX chart below shows what has happen after the crosses going back to November.  Will the pattern presented over the past 5-6 months repeat?  We know patterns tend to repeat until they are voided.  So I’m looking for an opportunity to the downside on the Indexes until the Buyers Support Zone is reached and TSI ticks up.

Bounce Zones for Premium Members: If you are a premium member some very powerful conditional order setup information will soon be available to complement the “Go-No Go” Table each week. Chart showing zones where traders can expect prices to bounce due to supply and demand pressures. What does this mean for Premium members? Charts of our ETFs and Core Stocks with define Bounce Zones will empower you to place conditional orders around these areas for both entry and planned exits. This will be one more way Active Trend Trading will help Premium Traders with limit time for market analysis. Stay tuned for more on this beneficial feature!

With the Indexes showing weakness look for stocks that are holding up more strongly than the Indexes. Here’s a handful to watch: PAGS, WB, LGIH, RHT, COUP, TAL, GRUB, FANG and VNOM.

Remember to register for the After Market Monday and Making Money Trading Stocks and ETFs each week. In these webinars I will provide 10-12 stock set ups per year. All Levels of ATTS members will receive these trade email alerts. The NEW Composite Watch List provides a sort of all stocks that appeared on multiple Premium IBD Watch Lists this week. Often appearing on multiple list is a sign of strength and identifies a strong long term candidate. New Composite List Provided Below!

Register here to not miss the BONUS Trades or the ATTS Webinar Invitation list:

Running List, Strongest Fundamental stocks on the IBD 50 and the NEW Composite List of Stocks showing up on multiple IBD Watch List on April 1st.

Running List: 110 stocks are on the 2018 Running list. Major swap out this week. Find the list here: Running 4-20

When the new IBD 50 list comes out twice per week I conduct a fundamental sort which results in the top fundamental IBD 50 stocks being identified. The top fundamental stocks for this week are: VNOM, IBKR, GRUB, NOW, FND, ABMD, CPRT & PAYC. This sort is provided at: 4-20 Sorted

A new addition to the weekly watch lists for Active Trend Traders is a Composite List of IPOs and Growth Stocks appearing on multiple IBD watch list each weekend. When a stock appears on multiple Premium Lists it can potentially be an indication of excellent strength. The stocks on the weekly Composite List may not be at a sound trigger point but may be worth watching for future entries. I will do an analysis of the list looking for price near potential triggers. Stocks near potential triggers will be highlighted. The top stocks appearing on more than one IBD watch list last week are shown in the table below. The Composite List for this week: Composite 4-20