Profiting from Market Cues

THE WEEK

The number of stocks hitting their 52-week low suddenly jumped up on Wednesday, March 14^th.  I track this number everyday along with other factors looking for underlying clues of Market changes.  This particular sudden jump in lows also happened when the Market was at a new 52-week high making me doubly suspicious and on alert.  The 52-week lows suddenly increasing substantially without a related Market Price/Acton change lets me know the Market is weakening and ready to roll over.  I go on alert and am ready to adjust my trades quickly.

LOOKING AHEAD

We have an interesting week coming up.  On Wednesday the FOMC issues its decision on interest rates – whether to increase, decrease or just leave or the current rate.  Powell will hold a press conference shortly after the announcement at 2:30pm Eastern.  He is scheduled to speak again at 9:00am on Friday.  There is usually a Market reaction surrounding the decision on interest rates.  I think the Feds will hold the rate as is for now and the reaction will probably be mild and short lived.

We have also seen a climbing Market since November with new 52-week highs every week.  I have noticed a flattening at the current high and feel the Market may dip down for a while.

HOW AM I DOING?

I am still doing well with my trades.  But am definitely on alert sensing a possible rollover coming our way.  This week as I prepared my watchlist, I was also searching for stocks showing weaknesses.  I want to be ready to buy PUTS on stocks going down.  But as always I don’t place trades based on anticipation.  I wait for the actual movement to begin. 

This week’s Thursday webinar is going to be a fun one.  Our Quantum trading group recognizes the Market is in a constant flux, never the same month-to-month or year-to-year.  A lot of our focus is about developing new ways to trade these changes.  I am so proud of the Thinking Traders in this group.  For the past 5 months, Larry has been working on a new trade which he named the ICE MAN.  Several of us have been testing along with him.  This Thursday the results of the test along with our newest revised rules and new trade journal format will be presented.

The Ice Man Trade

How to develop and test your new trading ideas