Trader’s Report–Nov 22, 2015

Good Day Traders,

Overview & Highlights:  I hope all Active Trend Trading and Early Warning Alert members have a great Thanksgiving this Thursday!   Even in what seems to be a pretty mixed up world finding what we can be thankful for is key to our hope and solace.  So I want to send blessings to each and every member as we move into the Holiday Season!

For those who have been following ATTS for a while you know that the monthly performance has improved significantly since we got back to trading our rules based on the 8 day EMA.  This happened in September and for the past 2.5 months we have been on a clip that compounds out to about 40% per year.  Closed trades for the past 2.5 months have averaged over $3000 per month.  With a focus on Portfolio Management in Strategy I going forward I look forward to further clarification and simplification as we hone in on Wealth Building moving into 2016.

Holiday trading kicks off this week.  Markets will be closed on Thanksgiving Day and will close at 10 a.m. PDT on Friday for Black Friday.

The Website performance page was updated and shows current information.  Additionally a new video updating the performance to date of the Early Warning Alert System was recorded and is available at:

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 December 4th  

Register Here: Back on December 4, 2015

Next Training Webinar:  Dec 2nd

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

Mid-Week Market Sanity Check Topic:  Your Plan—Is it working?


Managing Existing Trades:

Strategy I:  Currently 3 open trades.  Strategy I is where we will do our portfolio building using mechanics using the Active Trend Trading System and guidelines learned from some excellent portfolio builders.  Moving into 2016 Active Trend Trading will use Strategy I as a Wealth Building strategy to go along with the Income Generating aspects of Strategies II & III.

Trade 1:  Bought 300 shares of YY for a pre-earnings run at 57.85.  Adjusted T1 this week to 59.50 to sell 150 shares which was hit this week. Closed for a profit of $247.50

YY reports on Monday AMC and the remaining 150 shares will be closed prior to the close.  Will maintain T2 at 62.40 and Breakeven Stop Loss during the day.

Trade 2:  Bought 500 shares of NOAH at 30.20 with a 10% T1.  Sold 250 shares on Friday when for a profit of $755.

Will hold the remaining 250 shares with a trailing stop based on a close below the 8 week EMA.  Hard stop at Breakeven.  Additionally I will be looking to add to this position on proper pullbacks.

Trade 3:  Bought 350 shares of CBM at 49.40 with a 10% T1.  Current Hard Stop at 4% below entry price.

 Strategy II:  No Open Trades

Wealth & Income Generation Strategy III Trades:  If the value of the underlying Long Options plus the premium cleared from selling weekly options approaches 100% on any trade I will close the position and start a new position.  With the IWM trade below because there is only 9 weeks until the long positions expire, I will look to close the total position if return approaches between 30-50%.

Trade 1:  Long IWM Jan16 127C & 127P – Waiting for Entry Trigger.  Stopped out of a trade with a $275 loss.

Trade 2:  Long TSLA Jan17 250C & Long Jan17 220P – Waiting for Entry Trigger. 

Several members have asked about this strategy and a more detailed explanation is available at: .

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

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:  


Pre-Earnings Trade:  Still a few stocks to report 3rd quarter results with potential for a pre-earnings run.  These include AVGO, ULTA and AMBA.


Potential Set Ups for this week:  This week is a Holiday Week and typically there is a bullish bias during the holiday because many of the institutional traders are off.  This results in lower volume which can also translate to more volatility and larger swings.  Just be cautious and stick to the rules.

Upside:  NOAH, NOW & FB

Downside:  CYBR, MBLY & AFSI

On the Radar:  Stocks that are interesting that need to either base or pullback to support or resistance.  TSLA, DATA, HAWK, EPAM, JBLU, ALK, BABA, VIPS, CRM & EBIX.

Leveraged Index ETFs:  Waiting for new trigger.

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

If simplifying your life by trading along with us using the index ETF is of interest you can get the full background video at:

General Market Observation:   Each of the three Tracking Indexes spent most of the week in rebound mode from the sell-off the previous week.  We are still faced with the divergence between weighted and non-weighted indexes.  The non-weighted indexes like the Russell and NYSE are lagging the other indexes which can be interpreted that underneath the hood weakness in lurking.  Holiday weeks tend to have a bullish bias due to institutional traders getting out of town early before the holiday.  We shall see if this holds during this week.

Remember that Black Frida is a shortened trading day so if you have a timed trade to close at the close on Friday set that for before 10 a.m. PDT!

SPX:   The S&P showed two strong days, two rest days and an indecisive day on Friday.  Price have rebounded back towards the resistance zone that starts at the 2100 level.  The signals were mixed between the daily and weekly charts with Momentum looking strong on the weekly chart and looking weak on the daily chart.  When this happens it is usually a clue that something is going on but the something hasn’t revealed itself, yet.

My play on each of the Tracking Indexes is to use the 8 day EMA as a line of demarcation for planning trades.  If we are in a Santa Claus rally through the end of the year there may be some profit to be picked up prior to the 1st of January.

Preferred ETF’s:  SPY, UPRO and SPXL

NDX:   On the NASDAQ 100 watch for support around the 4600 level.  This week’s action engulfed the negative candle from the previous week but is not considered a Bullish Engulfing reversal pattern because it’s not located at the end of a downtrend.  Price finished just below the previous breakout level of 4694 as Friday’s action lacked the oomph to push through this resistance.  Look to trade the either QQQ or TQQQ based on pullbacks towards the 8 day EMA or mid-section of last week’s candle.

Preferred ETF’s: QQQ and TQQQ

RUT:   The Russell remains the Index with the most significant potential to move either up, down or do nothing.  Typically the RUT can be counted on for bigger moves than the other indexes.  This has not been the case this year.  The index is under tension which may result in a breakout in either direction.  If the other two indexes start falling apart then the Russell may accelerate more quickly to the downside.  On the other hand if small cap investors ignore the potential upcoming rate hike, this index could kick it gear for a big run.  Right now the only obvious clue is the spring is tightening.

Preferred ETF’s: IWM and TNA

RUT 11-20


The Early Warning Alert Service has hit all seven major market trading point this year.  See the updated video at:

If simplifying your life by trading along with us using the index ETF is of interest you can get the full background video at:

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 Dec 4th  

Register Here: No Webinar this week.

To get notifications of the newly recorded and posted How to Make Money Trading Stocks every week subscribe at the Market Tech Talk Channel:

The Active Trend Trader Referral Affiliate Program is ready.  For more information or to become an Affiliate please register here:


 Index Returns YTD 2015

Index YTD 11-20

ATTS Returns for 2015 through Nov 20, 2015

48.7% Invested

Margin Account = +12.4% (Includes profit in open positions)

Early Warning Alerts = 10.8% partial positions; 19.4% full positions

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:

Updated first full week of each month.

Outs & Ins:  No new stocks were added to the IBD 50 this week.  But there was a wholesale swap out of stocks from the 2015 Running List.  30% of the stocks played musical chairs in this week’s list.  Remember the IBD 50, while a solid place to find strong growth stocks, is just a computer generated list that sorts stocks by IBD criteria.  A stock can fall off the IBD 50 list and still be a strong growth stock.  This is one of the reason why I track the yearly Running List.  Often these stocks will show signs of life prior to coming back on the IBD 50 list.

 In-Out 11-22


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 or leave a post on the website.   Thanks.