The market is taking a breather this morning although QQQ is gapping up .28% which bodes well for the market. Whenever the Nasdaq leads that is a healthy sign.
I am long and looking to get longer. This week historically has been a positive one for the markets. In addition, we are heading into the best time of the year historically for the markets. Now is the time to take advantage of a strong tailwind.
It is not the time to through caution to the winds! No matter how things look the rule is to never abandon your market sizing routines.Historical results while helpful to predict future returns are far from an absolute. When you have thrown in Black Swan events, investor psychology and randomness of events your protection techniques should always be in play.
We had a nice quick breakout trade early yesterday in CELG. My entry was 122.55 at 6:46 A.M. and exit was 123.65 at 7:10 A.M. Just a little less than 1% gain in 26 Min.
I am always looking for these types of trades. They typically are low risk if entered when market conditions are good and the trades are filtered appropriately. I look for this throughout the day however the first hour of trading seems to produce the best results.
Things are pretty quiet on the home and geopolitical fronts. I doubt that will last for long so enjoy it:)
One question to consider as we approach Thanksgiving. How did America get so divided? I am old school but not so much to not understand the various positions of Citizens on the variety of issues facing the U.S.
But last I looked we are all in this together. We are all part of the human race so there is no fundamental difference between anyone no matter where they live. The problem as I see it is all manufactured by the human mind. It tends to create problems when none exist.
Of course, it is much more complicated than this. But the underlying concepts remain the same. Power and Corruption along with the manipulation of citizens to meet the ends of whoever might be in power or wishes to get power. Nothing really has changed except we now have the electronic age where the modes of manipulation are much more diverse and powerful.
This, of course, has a direct effect on the markets as the policies of our politicians, directly and indirectly, effect the market as a whole and to a greater degree various segments of the market.
As a trader, it’s almost a necessity to know what sectors the various political types want to succeed or be eliminated. We saw that with the Coal industry. If you had your head in the sand you might have wondered why your coal stocks were getting hammered.
It’s not that hard to figure this area out. But it’s a necessity that you do for any medium term investing.
That’s my rambling for this morning:)
If you want to follow some of my trades along with my thoughts typically given after the open you can go to @rickjswings. 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
RickJ’s Handicapping Picks
