Just when you thought you had swing trading the stock market figured out!!!

Going into this weekend my swing trading strategy of jumping in long before the Thursday referendum was looking like a good one. I made a bit on the first pre-fed meeting move. Got out at the right time and was patiently waiting for the best entry between now and Thursday.

So this morning despite all my well thought out swing trading planning the market is doing what it likes to do quite often. And that is the unexpected! SPY is up 1.17% about an hour before the open. It’s looking today like a pile on day with a gap and go possibilities.

So where does that leave me for swing trading this market? I am sticking to the play. The UK Referendum is still a few days away so that should perhaps produce the entry I am looking for. If not then cest la vie:) You have to go with the flow and then adjust. And that is what I will do. But on a Monday morning, an hour before the open is not the time to jettison the plan completely.

Saying that swing trading today can produce some challenging trading. Typically big gaps up are very difficult to swing trade. Gap and Gos are rare. Typically you either get a pullback or a consolidation neither of which is good for a swing traders bankroll. We will see. I am going to try to figure out a few breakout trades to go with in the event we do get a gap and go. But only a few.

Some things to consider this morning:

Yellen is giving testimony Tuesday and Wednesday (always a risk factor)
The 1st week of June after Opex has underperformed the last 17 years
UK Referendum Thursday
Sentiment is getting pretty low on stocks right now (this is positive)
The market as of the close Friday was oversold but not extremely so short term

That’s just a few of the things to consider this morning while figuring out your strategy for this week.

Also, I had promised listing sites I thought were extremely helpful for traders or people that wished to learn about trading. I made a comment last week about a post I thought was excellent. I am going to do more of that and also when I add a site to my list I am going to give it a short review. The first one will be up this morning after the market settles down.

But in the meantime here is an excerpt I read this morning I would like to share. It applies equally to wagering on sports, trading the stock market or life in general:

“The only way to build the confidence that is required for success is by taking risks. Each risk, whether it results in good or bad, will result in a learning experience. You will learn what works and what doesn’t. Even risks that result in a bad outcome will build confidence and make future risks easier”

You can thank Rayner Teo and Rolf of Tradeciety for this. Their sites are
www.tradingwithrayner.com
www.tradeciety.com

Back to work for me. Good Luck Today

RickJ
RickJ’s Handicapping Picks

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