The stock market is gaping up about 1/4% this morning. Of note Metals strong and everything else around the 0 line.
I expect today to be a quiet day with the bias to the upside until the last hour or so of trading. Tax selling might start hitting the market the last hour of trading. Although the way this market has been not many have losses unless of course your a mean reversion short trader:)
If you’re in that category your probably trying to figure out what asylum to enter Jan of next year.
If you have realized gains heading into today then its time to look over your losing positions and consider taking the loss today. Never hurts to offset your gains at year-end.
TUR a bottom reversal trade had a big day yesterday and now our gain sits at over 10%. We broke through resistance yesterday now let’s see if we get some follow through.
GLD is on the upswing and it is a system trade of mine that I have shared. It’s looking very good right now.
XNCR a mean reversion trade is still underwater, however, its shown some life the last month. We will see on this one.
Finally, I exited TLT on the big move up 2 days ago for a small gain. That was a mean reversion trade.
A tip on these mean reversion trades, you want to have %R on the daily chart to be below 10. Ideally below 5 so that when it does reverse you have room to go for profits as >50 on %R is the exit signal.
I outlined two days ago the things to be looking for in January. It’s going to be a very busy news month, most of which will be market moving.
Also, we get another long weekend. This is a good time to think back over the year and go through your trading mistakes. Then make adjustments so that you do not repeat them in 2018.
If you do not see any mistakes you made last year, you need to quit trading:) Even the most seasoned traders make mistakes, but they adjust and typically do not repeat them.
The categories I look at are:
1. Position sizing
2. Selection methods
3. Exit strategies
There are always ways to improve your trading. Also, there are some very good sites that you can learn from. I have listed 5 on my home page. All 5 are excellent for learning.
I should be around this morning for a short time. You can get ahold of me on Skype at riccja. Or join me for a short time after the open on twitter @rickjswings
Have a great New Years Eve.