Stock Market Correction Is Here

THE WEEK

Monday’s trading was an up day with very light volume and the Market was back to trending sideways.  Tuesday the Market had higher volume and price/action started tumbling down.  On Wednesday the prices fell below the 50 day moving average and IBD finally declared it was a ‘Market in Correction’

In our Quantum trading classes we had been discussing the underlying signs for a downturn since July 28^th.  We were prepared to take advantage of the price action and prosper.

LOOKING AHEAD

Last week we had three hard down days with Friday being an up day with good supporting volume.  We are also very close to an old support area around $431 on the SPY.  As smart traders we should start anticipating  the next trend.  Right now, the Accumulation/Distribution is showing a lot of money has exited the Marketplace last week.  For the Market to continue down more sell off would have to occur.  That could happen but I don’t see a big rush down.  Rather I think buyers are now looking for a new entry points.  I believe prices will go down some more but the Market will be more sideways and wobblily with buyers starting to test and buy in again.

HOW AM I DOING?

I had a very good week trading just five positions to take advantage of the hard three days of down price/action.  We have now completed 5 weeks of this Quantum series.  I am up 31.6% after 5 weeks.  For the same period the S&P is down -2.5%.  Could I have done better – sure.  But I am a cautious trader and maintain certain risk standards.  I would rather focus on a few good trades than just throw “spaghetti against the wall” to see what sticks.

One of the most important steps for great traders comes after a really good week of profits.

You don’t want to hand back all those profits by getting attached to any one trend cycle.

This week’s DEEP DIVE

HOW TO SPOT THE TREND CHANGE EARLY 

AND TAKE ADVANTAGE OF THE NEXT TREND