We’re one week into 2021 and all 5 of the major indexes (S&P 500, NADSAQ, Russell 2000, NYSE, and Dow) jumped to fresh all time highs. Every timeframe (monthly, weekly, and daily, are in strong uptrends.
Are we due for a pullback? Well, each week for the past 2 months we’ve been getting pullbacks. They’ve just been very short! Take a look at the daily and weekly charts of the indexes below. The market has been inching its way higher. Yes it has made higher highs every week, but it is also having short tight consolidations on the daily charts.
So what types of trades have been working? The most consistent ones are the ones that are behaving similar to the indexes. Strong run ups. Tight brief consolidations. Then blast off! Open up a chart of any of the current open trades for great examples.
DAILY CHARTS (indexes): https://www.tradingview.com/x/Yp5n6Zwb/?aff_id=15325&offer_id=10
WEEKLY CHARTS (indexes): https://www.tradingview.com/x/w0PQIZrg/?aff_id=15325&offer_id=10
MONTHLY CHARTS (indexes): https://www.tradingview.com/x/wbF3dx2m/?aff_id=15325&offer_id=10
Heading into next week, there’s many names (18 total) on the Trade Ideas list that are interesting! However, practically all of them had such strong rallies off their lows last week, that the distance between entry and stop loss is too wide to make them actionable right now. They need to tighten up. It may only be a day or two. It’s time to stay on your toes and be ready.
For now, I’m sitting with what I have. With the 8 stock trades I have (Bitcoin is in a separate account) 3 of them were opened last week. I’d rather let them develop and allow other Trade Ideas develop further.
There are 3 ideas that made it to the focus list. AMD, CARG, and RMD. They’re all OKAY but given where I’m at in my portfolio and the fact that none of these strike me as a ‘HELL YES!’ means I’m going to sit and wait for now.
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