The Stock market continues its incredible bull run. You can make a list of at least 10 reasons to be skeptical, and I have, yet price is king.
Any mean reversion traders that have played the short side of this market have been crushed. They probably go into convulsions if you even mention mean reversion trading:)
The Stock Market is unchanged 40 min before the open. Of note, financials up and oil down.
The dollar trade in UUP is doing very well right now. If this is indeed a significant reversal we are on board with almost perfect timing. If it turns out its a fake move we will exit the trade. It will be interesting to see how it plays out. Right now we virtually little downside and a significant upside on this trade.
These reversal trades do not come around that often. You look for sectors that are crushed and have been crushed for a very long time. Then you want to see some sort of base, retest, and then break out with volume. Add an RSI divergence to that you have your trade.
I like to look at the weekly charts for sectors that are extremely oversold. I then put the sectors on my watch list and view the charts daily.
It’s probably the best risk-reward trade you will find in trading. But you need a lot of patience.
As most of you are seeing I am making a few changes to the site. I have created a political odds page where all posts in that category are posted to the page. In addition, I am in the process of creating a stock market page where posts like this are sent to that page.
That way the home page will be only sports handicapping when I am done. Then you can view whichever you like without having to rummage through the posts that do not interest you. I should have that finished by the weekend.
If anyone has any suggestions on how to improve the site they would very much be welcomed. I have received a number of suggestions over the last year or so, many of which I have implemented.
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