So far my swing trade plan has worked out well. Get long for the Fed meeting was the right idea. I took some heat but excited for a small profit shortly before the Fed announcement. At first, I was sorry I exited but at the end of the day, my decision looked like the right one. And this morning it looks like genius:)
Now the 2nd stage of my plan is getting long prior to the UK referendum. With the market off .5% premarket, this morning it’s going to put the stock market in as oversold a condition as it’s been for quite awhile. The mere fact I have on no mean reversion trades yet is a testament to my swing trade filtering.
But it’s almost time to start wading into the waters with a mean reversion swing trade. Fear is at an all-time high right now. A trend day down today will more than likely get us into the “quit for life” category for beginning traders who swing trade.
Depending on the open I may start legging into my mean reversion swing trade this morning. What I do not want to do is leg into it if there is a chance of a trend day down. So I will be looking very closely at $ADD for clues.
Almost ever system I follow is triggering long right now. But as I said when the market is news driven you have to adjust your timing. And it’s not very easy, to say the least.
So I am open minded today as to what I am going to do. The odds right now of a UK exit from the EU are around 8/5 against the exit. A few months ago it was close to 10/1 against. Looks like our President’s threats had the reverse effect on the brits:)
If you wish to follow my trades you can go to @rickjswings. It’s my private twitter feed. It is free at this time.
Good Luck Today
RickJ’s Handicapping Picks