Short term there might be bumps on the road but as of now there is no proof of deterioration in market or setups. Nor do you see blowout moves. Which tells you that this move might have lot more legs.
The rally keeps broadening with more sectors joining the party. Many stocks are forming bases and having orderly correction.
The post breakout moves are in some cases small, but that does not matter if you adjust your holding time frame and target.
Last year was wild and had very high volatility , as against that in last 4 weeks we have seen the market showing characteristics that it tends to show during bull markets.
The first phase was dominated by most beaten down stocks, but slowly that theme is fading and we are getting rotation in to growth and more speculative momentum sectors.
Keep your focus on good and sound setups. Some days you may not find any, that should not lead to lowering your standard.
Always think of where you will exit a trade before entry. Look for selling in to strength as far as possible. That is the essence of swing traders methodology.
If a stock does not act right on entry just dump it and move on to next setup. Bad b/o or stock that do not act well post b/o suck up lot of your energy as you have to focus on them.
A good b/o should work instantly. It will have immediate follow through. It will not give up intraday gains easily. It will bounce back from minor selloff fast.
At this stage focus on handful of setup ideas. Do not try and learn new methods or do something exotic at this stage. If you are trying out some new untested methods and following some experimental methods, you might be wasting time. Do your R&D in bear markets.
If market shows signs of selling then we will change our view. Till then stay laser like focused on long side and finding good setups.
Focus on your setups and don't worry about others.
The rally keeps broadening with more sectors joining the party. Many stocks are forming bases and having orderly correction.
The post breakout moves are in some cases small, but that does not matter if you adjust your holding time frame and target.
Last year was wild and had very high volatility , as against that in last 4 weeks we have seen the market showing characteristics that it tends to show during bull markets.
The first phase was dominated by most beaten down stocks, but slowly that theme is fading and we are getting rotation in to growth and more speculative momentum sectors.
Keep your focus on good and sound setups. Some days you may not find any, that should not lead to lowering your standard.
Always think of where you will exit a trade before entry. Look for selling in to strength as far as possible. That is the essence of swing traders methodology.
If a stock does not act right on entry just dump it and move on to next setup. Bad b/o or stock that do not act well post b/o suck up lot of your energy as you have to focus on them.
A good b/o should work instantly. It will have immediate follow through. It will not give up intraday gains easily. It will bounce back from minor selloff fast.
At this stage focus on handful of setup ideas. Do not try and learn new methods or do something exotic at this stage. If you are trying out some new untested methods and following some experimental methods, you might be wasting time. Do your R&D in bear markets.
If market shows signs of selling then we will change our view. Till then stay laser like focused on long side and finding good setups.
Focus on your setups and don't worry about others.
One of the better looking long term setup yesterday showing up in our scans was RAX. RAX is breaking out from a long multi month range. This video goes in to more details of it.
RAX: Long Range Breakout
2 comments:
RAX Earnings report will be coming up on Feb 13....do you and your subscribers actually hold these type of stocks through ER's?
Depends on how much open profit is in position. It is running in anticipation of good earnings.
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