The market could not hit its first 5 day rally of the year as sellers took to the market by the end of the session. Volume was mixed on the session as BAC helped boost turnover on the NYSE. Biotech remained on a tear as IBB hit another all-time high. Today was a pretty decent session given how Greece fears have sent the market lower in the past. Now, it is onto the next crisis. We have done very well simply listening to our price signals and managing our risk. How many quickly sold due to fears over Greece? Even selling because of Chinese markets. Stick to the plan and follow the trend.
Yellen was on Capital Hill today testifying. We have maintained a position there is no way the Fed raises rates. The central bank will certainly do its best to maintain its rhetoric on rates. However, they simply will not raise rates and hide behind “weak” economic data. Now, we are a bit more dynamic than Japan and are not likely to follow the same path. Or will we? It is important to break free from the system and learn to let your money work for you. Big Wave Trading can help. Using our trend following system using price signals and a robust money management you can profit from any market. Sign up today!
Our Platinum Members have been treated to quite a few intraday breakouts from our 3 week tight patterns. One big one being FB on Monday and one of our 3 horsemen. AMZN and NFLX continue their positive price action. NFLX was up over 10% in after-hours after earnings. It may be best to take something off the table if you are long NFLX. Yesterday we saw ILMN break out from its own 3 week tight pattern. There are quite a few stocks continuing to move nicely. We do have two stocks ready to break out from 3 week tight patterns. You need to be a platinum member to view.
We have a long bias in our portfolios, but we are not bulls per se. Our methodology is a simple trend following system including a robust risk management system. All you need is an entry, position size, and an exit strategy. Stick with it and you will score big.
It will be important to us how we act around the 50 day moving average of SPY, QQQ, and IWM. If we are to move higher look this market to maintain this moving average.
As always, cut those losses short and ride your winners.
