Last Friday we had a solid up day breakout in the stock market. Then Monday thru Wed consolidation and Thursday a solid up day breakout. This is what a healthy market does. My trades have been way over EV but I will take it:)
I am now narrowed down to 3 positions as I have lightened up on this move. My position in GLD which is the largest and is up 1.34% in pre-market! So it looks like we are getting another Breakout in gold after several weeks of consolidation. This is a system trade I have been making for years now. It’s one of the top 5 that I trade and is steady as you can get.
Today the markets are off slightly 40 min before the open. The overnight market was much higher and we are now at the lows of this overnight move.
My thinking today is to look for 1 or 2 trades for a Break Out to the upside. My plan now is only a day trade as the market is again overbought a bit short-term. I have 3 or 4 trades in mind. So it’s just a question of what the market looks like after the open and whether we get the Breakouts.
Ideally for these trades you want the market setting up for a trend day. One way to monitor this is through $ADD. If $ADD is +1000 or more 15 min into the trading day that increases the likelihood of a trend day. Those are the days that breakouts work best on for a day trade.
Here are a few stocks and ETF I am monitoring for Breakouts today:
FAST
FB
IBB
All three have high liquidity and all 3 are positioning for an upside move.
You can follow my trades and comments by following #rickjswings. It’s my private twitter trading account and is free.
Finally, the Football Special for the 2016 Season ends on Sunday. The details are all explained on this page.
Good Luck Today
RickJ
RickJ’s Handicapping Picks
