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Hi Team!
I sound like a broken record with my " high cash, smaller position sizes, shorter time frames" slogan. However, I am of the firm belief if one is to make it thru this period with working capital intact, this is the strategy. This last uptrend looks too weak to continue at this point; please be CAUTIOUS about opening new positions.
Many reports are out this week --which could pull the market lower, keep us in this congestion period, or send us sailing higher once we reach key/critical support levels.
I have to believe at some point the US dollar will retrace, allowing our commodities to bounce --boosting the US markets slightly higher. The volume or market strength remains lighter which compounds our sense of market direction chaos. Usually in March/April/May we see the markets pick up which allow us to move full steam ahead.....this year the question remains.....will we be steaming ahead on the long or short side of our trades.
Low market strength, volume, and volatility makes it difficult to build solid swing positions. Many part-time traders are begging for swing set-ups (stock and options). I hear you; however, if I am not willing to place my dollars in a swing trade, I can't with conviction, build them for you to place your dollars on the line.
The first page of the .pdf presents what I must see to build long positions relative to the S&P/ DJI levels. If we remain in this consolidation period this week, I will adjust targets to lock in gains and move to another trade.
Growth positions update:
$HYTM - I will evaluate this week whether to hold this position or swap out for a mover. My position isn't large....I practice what I preach (small position sizes) during this market period. I am certainly not adding.
$CRXX - I will see how the FDA news plays out this week. I don't trade the news, but I don't ignore it either. Again, the position isn't my normal size build.
$ETRM - still accumulating in small increments as opportunities present (still a relatively small position size)
Remain cognizant of growth vs income set-ups/positions. Growth can take some time. If you need income, I must remind you that growth builds are not the criteria. If you aren't sure about a set-up from one of the BULL$ traders, ask! Determine if it is a growth or income trade to help you determine if the set-up meets your criteria.
Facebook: copperstl Leigh Jones (my BULL$ trading
page)
www.bullsonwallstreet.com
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