It’s still a stock picking market, versus a trend trading market, as the SPX is still stuck rangebound. SPX has potential up to the bottom of the trendline still. If it does head there, I’ll be watching for it to stall once again. If it can’t cross the last pivot high today around 914, stay alert for a quick drop back to 880′s. This whippy action, a fight between the bulls and bears, could be the prequel for a trend move either way.
XAU is in bust out mode today. FCX and AEM winners there.
FCX gapped higher and gave a 1st entry over the bottoming candle. This entry is aggressive. The next candle is a shakeout candle, followed by a quick reversal candle. Note how these candles are retracing over 75% of the wide-range red bar down. Once you retrace 50% of that and bulls keep driving higher, it’s indicative of bulls taking control. Another entry presents itself over that quick reversal candle.
AEM entry over the base.
For daytrade moves I’ll sometimes ratchet down to a 2-minute chart for tighter entries.
{ 3 comments… read them below or add one }
Hi Mr. Online Trader,
I am just a novice aspiring trader, and found your veteran skills through my research. I need some advice if you don’t mind please. I just wanna know how do you find/search your stocks to trade and how do you trade them. Sorry for my question, I just wanna have a direct answer from you sir. Thanks a lot.
I focus on ETFs. Most from proshares.com and direxion. If you’re just starting out, you could focus on only 2-3 patterns/setups and a list of 30 stocks/ETFs. I prefer them priced 20 dollars and above. Trade the top 2-3 from leading sectors. Thats why I prefer the proshares ETFs.. diversification and they have volatility, which is a trader’s best friend.
Or you could trade the gapping stocks in the morning. Those usually have news on them, and thats why they’re active and moving. Theres services that provide those.
The main thing is stick with a few patterns/setups, and a small list to trade. Focus is key.. at least it helps for me.
Mike
Thanks a lot Mike! I really appreciate your quick reply.