Where is the market trend?
Where is the market trend?
When I look at the broad market, it’s difficult to see a clear trend in the broad market. Every rally seems to be followed by a sell-off. Every sell-off seems to be followed by a rally.
This is what they call a stock-picker’s market. Finding the hidden gems is crucial when the market doesn’t have an overall trend. Let’s look at SPY to start:
As you can see, SPY is drifting higher over time, but showing some question marks here as it tests the 20-Day Moving Average. This could be the top, or it could be a short-term consolidation period. For me, to be bullish the market, I need a new high, and to be bearish, I need to see a failure of support, and likely a breach of the 50-Day Moving Average to show some momentum. In other words, I see nothing great today, but perhaps I will see something there tomorrow.
How about tech? Let’s look at QQQ:
Tech is similar to the S&P 500, but with a bit of relative weakness as it has tested the 50-Day Moving Average repeatedly in the last week. This, again, is illustrating a need for a new high to be bullish or a breach of the 50-Day Moving Average to be bearish.
But there’s always a trade if you dig deep enough. One that I’m looking at right now is in biotech, so let’s look at XBI:
After pulling back to the area of consolidation formed in January and early February, XBI seems to have found support. There’s a higher high, there’s support at the 100-Day Moving Average, and there’s a target at the prior high around $102. With just over 10% of upside, there’s certain to be some interesting potential here in the biotech space to look for names to add to by Outlier Watch List.
With that, I’ll be diving deep into the component stocks of XBI to find more interesting technical setups that have attractive options volatility, as well. And just like that, I’m starting to pick my stocks in this stock-pickers market.
As always, please go to http://optionhotline.com to review how I traditionally apply technical signals, volatility analysis, and probability analysis to my options trades. And if you have any questions, never hesitate to reach out.
Keith Harwood
Keith@optionhotline.com
See Related Articles on TradewinsDaily.com
Finding Buried Treasure In This Market
Deere Chart Shows Hot Indicator Signal
Three Top Gold Stocks to Buy on Dips
Trading FI: Option Strategy Revealed
© 2024 Tradewins Publishing. All rights reserved. | Privacy Policy | Terms and Conditions | Contact Us
Auto-trading, or any broker or advisor-directed type of trading, is not supported or endorsed by TradeWins. For additional information on auto-trading, you may visit the SEC's website: All About Auto-Trading, https://www.sec.gov/reportspubs/investor-publications/investorpubsautotradinghtm.html
TradeWins does not recommend or refer subscribers to broker-dealers. You should perform your own due diligence with respect to satisfactory broker-dealers and whether to open a brokerage account. You should always consult with your own professional advisers regarding equities and options on equities trading.
1. The information provided by the newsletters, trading, training and educational products related to various markets (collectively referred to as the "Services") is not customized or personalized to any particular risk profile or tolerance. Nor is the information published by TradeWins Publishing ("TradeWins") a customized or personalized recommendation to buy, sell, hold, or invest in particular financial products. The Services are intended to supplement your own research and analysis.
2. TradeWins' Services are not a solicitation or offer to buy or sell any financial products, and the Services are not intended to provide money management advice or services.
3. Past performance is not necessarily indicative of future results. Trading and investing involve substantial risk. Trading on margin carries a high level of risk, and may not be suitable for all investors. Other than the refund policy detailed elsewhere, TradeWins does not make any guarantee or other promise as to any results that may be obtained from using the Services. No person subscribing for the Services ("Subscriber") should make any investment decision without first consulting his or her own personal financial adviser, broker or consultant. TradeWins disclaims any and all liability in the event anything contained in the Services proves to be inaccurate, incomplete or unreliable, or results in any investment or other loss by a Subscriber.
4. You should trade or invest only "risk capital" money you can afford to lose. Trading stocks and stock options involves high risk and you can lose the entire principal amount invested or more.
5. All investments carry risk and all trading decisions made by a person remain the responsibility of that person. There is no guarantee that systems, indicators, or trading signals will result in profits or that they will not produce losses. Subscribers should fully understand all risks associated with any kind of trading or investing before engaging in such activities.
6. Some profit examples are based on hypothetical or simulated trading. This means the trades are not actual trades and instead are hypothetical trades based on real market prices at the time the recommendation is disseminated. No actual money is invested, nor are any trades executed. Hypothetical or simulated performance is not necessarily indicative of future results. Hypothetical performance results have many inherent limitations, some of which are described below. Also, the hypothetical results do not include the costs of subscriptions, commissions, or other fees. Because the trades underlying these examples have not actually been executed, the results may understate or overstate the impact of certain market factors, such as lack of liquidity. Simulated trading services in general are also designed with the benefit of hindsight, which may not be relevant to actual trading. In addition, hypothetical trading does not involve financial risk, and no hypothetical trading record can completely account for the impact of financial risk of actual trading. TradeWins makes no representations or warranties that any account will or is likely to achieve profits similar to those shown.
7. No representation is being made that you will achieve profits or the same results as any person providing testimonial. No representation is being made that any person providing a testimonial is likely to continue to experience profitable trading after the date on which the testimonial was provided, and in fact the person providing the testimonial may have experienced losses.
8. The author experiences are not typical. The author is an experienced investor and your results will vary depending on risk tolerance, amount of risk capital utilized, size of trading position and other factors. Certain Subscribers may modify the author methods, or modify or ignore the rules or risk parameters, and any such actions are taken entirely at the Subscriber's own election and for the Subscriber's own risk.
|
Related Posts :
Urgent: Your trading system isn't working...So much about trading systems are unpredictable... so let me show you how to strengthen your outcome. 96 … Read More...- Week-end Wrap-up: How to make earning $1,500 look easy … Read More...
- Haha! Here’s your surprise96 … Read More...
- Why would he give this away?96 … Read More...
- [Live] Rob just texted me96 … Read More...
0 Response to "Finding Buried Treasure In This Market"
Post a Comment