In yesterday’s blog post, I said that our market timing model has just shifted from “buy” to “neutral,” due to continued institutional selling and weakening of the major indices. This means we are now laying low with regard to new swing and core trade entries. Nevertheless, we have just spotted two very short-term momentum trade setups (one ETF and one individual stock) that could be in play…
In my previous blog post, I said that indecision and choppy price action near the highs “is often a warning sign that a substantial pullback may be just around the corner (especially when combined with higher volume selling in the broad market).” Fast forwarding two weeks later, stocks have indeed slid lower, weighed down by continued distribution (higher […]
Two weeks ago, day-to-day volatility, indecision, and choppy price action in the stock market started picking up substantially. When indecision and choppy price action starts appearing after an extended rally, it is often a warning sign that a substantial pullback may be just around the corner (especially when combined with higher volume selling in the broad […]
Whenever I post an educational trade review on this blog, the technical trade setup is usually of the breakout or pullback variety (details here). Today, I’m excited to walk you through a different kind of Wagner Daily trade that was recently bought and sold with a 15% price gain over just a 3-day holding period. Trading The “IPO […]
Traders frequently tell me that knowing when to sell a winning breakout trade is one of the more challenging aspects of having a consistently profitable trading strategy. Sell too soon and you fight the feeling of regret while the stock continues cruising higher. Get too greedy and try (typically in vein) to catch the absolute top […]
When I was a new trader and missed the chance to buy the breakout of a hot stock I had my eyes on, I used to get rather upset and frustrated with myself. After all, I felt I was truly missing out on a great opportunity to profit from momentum swing trading. But I eventually learned […]
When I was a new trader many years ago, I hated being wrong with my market analysis and stock picks. I was also quite reluctant to admit when I was wrong. But I eventually learned there is absolutely nothing wrong with being wrong, just as long as it is done the right way. Whew! Got that? […]
Not surprisingly, stocks moving up while I suggested the possibility of them moving down led to an assortment of emails from readers who were quick to point out how “wrong” my analysis was. But here’s the amusing irony of the situation. The act of suggesting I am “wrong” because the stock market has not yet fallen apart is actually wrong because…
For the past five weeks, the S&P 500 and NASDAQ Composite have been stuck in choppy, sideways ranges. However, the good news is my top leading technical indicator is strongly hinting that stocks may finally be ready to make a significant, definitive move in the coming days (albeit to the downside). Here’s a few short selling stock picks for trading such a downside move…
Although the S&P 500 is on the verge of breaking out to a new high, the NASDAQ remains stuck below its 50-day moving average. This divergence has created choppy trading conditions in recent weeks that lead us to believe the best plan of action right now is to shift into “SOH mode” (sitting on hands).
