Hey Guys,
I talked yesterday about how the market was facing a couple potential forms of resistance. The market drove right through those yesterday, which was a nice sign of strength. It doesn't mean it will hold, but it's a nice initial response. Here's what the chart for the S&P 500 looks like right now:
If you're familiar with my trading strategy, then you know that this is almost like the inverse setup of it. The price "came back" to the moving average line after exhibiting sharp down-trending price movement.
Does this mean the odds are that the price will go down from here and resume its downtrend? Historical evidence doesn't necessarily support that, as the inverse of my trading strategy doesn't have a long term back-tested edge. But it doesn't mean it won't happen.
Right now, every stock position I have is green. Let's see if that holds until each of those trades is finished.
There have been no new trades yet today. My main account is already totally maxed out anyway and has no room for new positions.
I sent out an email yesterday explaining how I simplified my trading accounts. I now only have one stocks account and one options account.
A couple things I failed to mention in yesterday's email:
1) Any existing trades will remain unchanged. I'll see those through with the same exits as I originally published.
2) At this point, I will be indiscriminate about which strategies each trade is for. In other words, I will take trades for both the Main Pullback and Double Down strategies from the watch list. Whichever sets up first is what I'll take.
If you have any questions or feedback, I'd love to hear from you.