Enough of these spin cycles, what the market really needs is a complete wash & rinse!
Once again, the market looked poised for a meaningful plunge, yet bounced back strongly, creating whipsaws and more challenging outcomes.
One way I've been advocating handling these conditions is to immediately adjust your stop to breakeven after the first day the closing price is in profit.
That will mean plenty of scratch trades in this environment, but that's better than losses.
So, here's how it works. After one closing day in profit:
- Move stop to breakeven; OR
- Close half your position and move stop to entry level breakeven; OR
- Close half your position and move stop to entire position breakeven *
* In this third scenario, this means moving your stop to the same distance from your original entry level, as the distance between where you took the P1 and your original entry level.
Market Outlook
It's interesting to notice that many tech-type stocks have already retraced around 50% from their highs. Many are also bouncing off their key levels. And yet, the indices are remarkably robust, and not at any kind of capitulation scenario yet.
And yet, that's exactly what is needed ... a good 20-30% clear-out from the highs so we can reset.
These kind of market conditions are often the prelude to that kind of action, but it's not guaranteed.
So, right now please consider my amended trading plan outlined above. There are some attractive setups right now, and profits are there to be taken, but trading conditions are challenging so you do need to take them quickly.
Software Upgrades
You should notice some important upgrades. Namely:
- A much speedier TradeFinder turnaround
- New icons within the TradeFinder results sets and Stock Summary pages, which are more intuitive and relate better to our Big Money Footprints.
- New Fast Filters in the Stocks VIP TradeFinder (I will get around to inputting more Fast Filters into the other TradeFinders)
Many more upgrades are to follow in the coming weeks.
Options Bootcampers
Keep an eye out for our first Mastermind session. That will be within the next few weeks so I can showcase some new tools that are almost ready to show.
Package Deliveries Update
For those whose parcels got destroyed, your new packages are being made as we speak. Because we dare not include powerbanks this time, I'm replacing that item with a paper pad of pre-printed 1-minute Trade Journals. Ultimately we'll do those in a digital format, so everyone will have the best of both worlds!
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That's it for today ... Again, there are setups out there, but you do need to protect your profits pretty much immediately at this point in time.
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