I am still biased more to short side (bearish) but current market situation with such strong rallies are not good for such approach. Market is still in range of correction after January’s sell off. I still monitor several very weak stocks . I am now going into sit and watch mode and will monitor situation for some days too see what will develop on markets.
I put a lot of importance on stock volume analysis. When price move is accompanied with good volume it is strong signal for me.
Current situation on US stock markets is good example. You can see like during correction period (approx. last 3 weeks) volume came down. Institutional investors (big banks, asset managers, fund etc) were not participating on these moves. They were waiting.
And therefore I did not believe rise of markets. And finally strong downtrend move happened on Friday. And volume picked up again. It is strong signal. Big investors are not in buying mode now. They are going to sell or short more. And they expect markets to drop much more.
It is totally what I feel . Therefore I made huge profits on short trades in last 3 weeks. Selective shorts worked very well. GOOG, AMZN, APOL are some of examples. And I want to short more, will wait for any bounce for good stock swing trade short setup.
Especially Nasdaq-100 index is moving sideways in range. Still not able to move over 20EMA. This is not good sign for bulls. technologies are not bought by large investors.
And it means that they are still good for short trades. I traded GOOG 3 times during last 2 weeks and made nice profits on this stock. I plan to short this stock again in every rally to 500 (previous support, now resistance).
Also stocks like AMZN, EBAY, EQIX are good opportunities for possible short swing trades
and buyers are not coming. Market moves are driven by short term traders. Quick reversals can happen. And stock market volume is low.
Time to be conservative in both ways. I slightly prefer to be more short as markets are still weak.
As I mentioned in my newsletter Nasdaq-100 is weakest market index . And it was Nasdaq-100 which was first in red yesterday.
I had GOOG on my short trade setup list and I entered trade yesterday. It was sold off right from first minute of trading. So I use 5min low strategy to enter partial of position and then my trade setup entry point for rest of position. I am now short GOOG and I expect that it will break down 500 and will go lower to 360 - 420 levels.
Stock markets rallied during last days but I am not buyer now. Instead I see it as opportunity to find good short trades.
I like several International ETFs for short trade. European ETFs , China ETF and Singapore ETF have bearish stock chart and I am already in short or going to short them soon.
Still in waiting mode till FED decision. I want to see market reaction to it.
Till then I prepared info about currency ETF shares as they could be good vehicle for position ETF trading strategies with currencies.
US markets are in recovery situation. I do not want to be very aggressive with US stocks and US sectors right now. There is FED meeting this week and I think that nobody can predict market reaction to its decision.
I did my regular weekly big stock market and sector analysis on weekend. I added some International ETFs to my ETF list. And found some swing trade setups . I noticed that some of these International ETFs broke their important support level. I want to use any pullback to these resistances (former support act as resistance now) for entering of short trade . They are planned to be swing trades and also position trades.
Here is example of EWG (Germany ETF) chart analysis.
Stock markets continue in corrective up move. I think that they can rise a bit more as their resistances are still higher. Will see.
I found chart with nice example of pullback. This is longer pullback but it is looking nice. I will want to enter long trade after breakout of correction downtrendline.
Markets expressed effort to rise and tried to close opening huge gap down. Especially Small cap Rusell 2000 index was first in green yesterday.
I tested new strategy for entering trades (I read about it somewhere on Internet). I expected to enter longs in this gap down and best looked SUNH. I waited 5 min and them bought some stocks above 5 min high . I will describe this advanced strategy on my pages, but it really worked nicely.
I like SUNH chart very much and plan to repeat this strategy again today. Also I have long swing trade setup for SUNH
