How You Can Secure Your Trades
Last week was one I won't forget for a long time! The week started with low volume but once institutions got involved with high volume on Wednesday, the entire landscape changed. Cash from the tech sector (XLK) and Health care (XLV) was re-invested into the Financial sector (XLF).
Lucky for me, an option position on $GS met my profit target (104%) on Wednesday and It was closed immediately for a gain. I was also stopped out of a losing position on $NXPI (-50%) but thanks to the ratio system I use, I'm still ahead because I always keep the math in my favor. With the way I trade, I only need to be right 30% of the time to double my money every year. Using ratios and stops is how i secure every one of my trades!My Market Outlook
Even though I had a lot of success last week, I'm still leaning on the bearish side this week. IBD® shows 8 distribution days with a confirmed uptrend. Howver, I also consider Friday to be a distribution day because the $SPY,$QQQ, and $DJX closed lower in volume 60% higher than the day before.
High quality growth stocks that trade over a $100 million perday are few and far between in the current market. That reflects a major lack of commitment from the movers and shakers which leads me to be cautious.
My Targets
As always, I prepare a watch list every weekend and develop a trade plan for any candidates that are nearing my personal entry conditions. Here's a list of stocks that made it through my funnel this weekend.
$CNC
$AVGO
$PANW
$TASR
For a full breakdown of their health along with a side by side comparison of each stock, you can subscribe to my watch list service quickly and securely via Paypal. For access to my trade plans for the week, sign up here.
Happy Trading!
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