BigWaveTrader will be back later on with market commentary. Until then, enjoy…
Talk about a ton of “go” signals in individual stocks, despite the extreme volatility. I am a little surprised that we have so many new long positions based on legit signals and actually have two new short positions. If they work, we make money. If they don’t move higher immediately, you get rid of some. When they hit the final cut loss area, you completely sell/cover it no questions asked. Hold and ride the winners higher. Sell/cover the losers ASAP so that the money can be moved into new setups or current winners. We still do not have a full buy signal so new longs can still not go over 5% each and new shorts can not go over 2% each. These are the hard rules of the system. When we go under a full “buy” signal, you can move the remainder of our cash into either a 1x/2x/3x ETF or load up on the next CANSLIM quality stock that provides a long signal. It was a very constructive day today as the market pulled back on lower volume–Nassy actually finished higher on the day. Today was day four of the rally attempt. We continue to look for a follow-through day where the market rallies 1.5% to 2% on higher volume than the day before. Preferably volume will be above average. If not, the chances for a failure greatly increases. I’ll take the signals as they come. I was hoping today would be more of a mellow day but I guess not. I take all signals. If you want to wait until the full buy signal is generated and push it all-in then, that is fine. However, before most stock market uptrends, plenty of stocks put in breakouts and setup for runs well in advance. It is possible this situation is occurring here with so many potential setups out there in our scans. I’ll be back with full analysis for subscribers after some water time. Overall, today’s pullback was constructive.
