Will The Stock Market Have A Soft Landing?

Every morning I complete  a thorough review of the Market before the opening.  One part of the routine which I call AMMO (AM Morning Outlook) is a review of the 52-week highs and lows of the prior trading day.  When I did this on Monday, I noted the 52-weel lows had double and I knew the Market was ready to dump.

And dump it did!  Powell’s Press Conference on Wednesday sent it plummeting further.  The good thing is I had pulled most of my trades placed for an uptrend early and avoided being crushed in the selling stampede!

LOOKING AHEAD

In Thursday’s weekly webinar I reviewed my reasoning why we won’t have the ‘soft landing’ that Powell has been talking about.  I think things will get much worse before they get better.  I am a big believer in trading what you see and not what you think will happen.  I am prepared for the Market going down more with detailed watchlist but will only take action if another big dump occurs.   TRADE WHAT YOU SEE HAPPENING.

HOW AM I DOING?

It was a good week except for one trade.  I got PUT to a stock and it has continued down.  That bad trade offset the gains I had as the market plummeted so I ended up just treading water.  I am selling covered CALLS on that stock and will wait until the price is back up to the ‘PUT to’ strike and then exit.  Any profit on the trade will be from the covered CALSS.

On Thursday’s webinar, a request was made.  The person wanted to know just how to set up trades for a down Market.  How do I choose my entrances and exits.  Do I use stop losses.  So that is the subject of this week’s Deep Dive.  It is also the end of the quarter.  I will also be discussing how I chose the group of stock I follow closely looking for clues of the trading patterns for the following day.  I call these stocks The Canaries and they are part of my AMMO routine.

This Week’s DEEP DIVE

Trading in a Down Market

Note:  My biggest gains happen in Down Markets