Rally continues in the market. Sector rotation still in full effect, money going into beaten up sectors ,commodity names like oil, coal and steel , even though energy names manged to close off the high of day and has tired look, while high beta tech names rest. SPY still below 200 MA and printing a bearish “rising wedge” type pattern. It doesn’t really mean anything as market can continue to grind higher but something to keep in mind if you are chasing longs.
Our “Green to red” short idea in energy names worked well at open but once they broke out of opening high (ORB) , short plays were negated as its very difficult to call a top on a parabolic stock run. All you can do wait for a setup to develop intraday via lower highs, moving average/vwap breaks etc etc. For example , WLL was on the blog for green to red type short.
As you can see, it opened green so we initiated a short around 6.70 for a green to red trading play and it worked really well but once it broke out of the morning high 6.90 area, short setup was negated. It kept on running all day until late in the day where we saw a first fade below both EMA, this is where you pay attention, stock made lower high and once it broke the higher low bear flag break, you had a confirmation of a trend change and start a short position and it worked great. Instead of predicting/guessing a top and initiating short blindly, now you have a confirmation. With parabolic run, a confirmation always works better than a guessing a top. I will be watching energy names again Monday for “green to red” short play.If you are struggling with your trading or learn how to trade you need to join our 60 day Bootcamp course. Our program is designed in such a way that you come out of it ready to trade live in just 3 months. We teach you everything from risk management to scanning to trading strategies. I also share my profitable intraday trading strategy which will make you money short term regardless of Market condition. The class is one of a kind, see why you should sign up for the course here . You will also have access to a private community where you can ask questions, share charts and talk with the instructors or other traders. You can also check out the testimonials from our students.
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