Hey Guys,
The market finished strong yesterday and then gapped up overnight. We've now got a chart that has a "teacup" type of formation:
You can see the cup on the left and the handle on the right. When a ticker goes into that formation, sometimes it can be a precursor to a larger upward move. There's no way to know for sure, but I've got three different positions tied to the S&P 500 right now so it would be profitable it things played out that way.
Notice also that the "reverse pullback" trade so far would not have worked on this chart (it's the reverse of my core trading strategy). I talked about that setup last week and about how it doesn't have a long term edge according to the research I've done. If we had shorted last week when the reverse pullback had set up (entering the trade at the moving average after a strong downward thrust through the lower Keltner Channel), we'd be looking at a small loss right now. Obviously this is just one trade, which is not statistically significant. But it's still interesting to monitor how it turns out.
There are no new trades today. That said, there are starting to be new tickers filling up the pipelines. There are some energy stocks on the watch list, which is a nice change. And the scan is picking up a few more tickers. Maybe we'll be seeing some trades soon. I'm not going to force anything that doesn't have a back-tested edge, so I'll continue to wait for the trades to come to me.
If you have any questions or feedback, I'd love to hear from you.