I really do not know how to react right now. A quiet day yesterday both on the political and geopolitical front. It looks like finally, the transition of power will stop being a significant risk for the markets.
That’s not to say there will not be demonstrations, rioting, threats, boycotts and whatever else can be used to disrupt the transition but the act of the transition itself seems now to be a forgone conclusion which means you can set it aside from your thinking as a trader and keep a watch on other intangibles as they come up.
As we approach year end it appears that nothing is going to disrupt the tailwind for the next 7 to 10 trading days.
I am long looking to get longer today. I had 3 swings I put on Friday that I exited yesterday with a net nice gain. X had about a 6% gain in two trading days. Nice to run into those from time to time:)
On these breakout swing trades, no way to monitor them and also evaluate them once in the trade is momentum. After all that is what breakout trading is all about. Trading the momentum on the stock. A good way to evaluate this is to use the 8 period EMA.
You can use it on a higher time frame as a filter. So if your trading 15 min charts you might want to use it on the 60 min chart for a filter. If you trade off the 240 min chart you could use the ema on the daily chart as a filter.
Its important to have a plan in mind before you evaluate trades and put the trades on. Otherwise there is too much room to put the human element into the equation which in most cases turns into a disaster.
This morning we are looking at a flat open with the only item of consequence to me is that GS and DM are trading now about .5% down. On the other hand IBB is trading almost .4% to the upside. All in all not much to go on premarket.
If you want to follow some of my trades along with my thoughts typically given after the open you can go to @rickjswings. Typically I talk about the overall day expected with the markets and also give some levels on the ES and NQ for failed breakout scalping.
It’s my private twitter feed for the stock market and its free. Sports Handicapping is the subscription-based part of this site. But considering the cost of joining it’s almost free:)
Good Luck Today
RickJ’s Handicapping Picks