02/27 – 03/03 Technology

qqq-25-02     xlk

The technology sector has proven to be one of the strongest since post Trump election, only showing little weakness with stocks like NVDA, TSLA and BIDU dropping down last week after earnings . However, there are many other stocks like AAPL and FB that are doing very well. The prior pivots for trading this week is $130.70 and $129.38 on QQQ ($52.65$52.17 for XLK)  which are also the highs and lows on weekly chart of the last week. As long as QQQ hold $129.38, stay bullish and watch for follow through to clear $130.70 level. If bears build up power and broke $129.38, see if they hold and watch for follow through to $127.72 level.

But in spite of this, we are little extended so we need to be patient trading tech stocks. In case of gapping up on monday above $130.70 level or in another day after clearing this level, we may see a move down in that day as we move in overbought area.

Strong stocks : 

FB, AAPL, BABA,  AMZN, GOOGL or GOOG .

Weak stocks :

NVDA, TSLA, BIDU .

02/27 – 03/03 Russell 2000

iwm-25-02

As we see in the chart of IWM ( traded etf for Russell 2000 ) we have a move up from post Trump election . The prior pivots for trading this week is $137.20 and $140.32 which are also the highs and lows on weekly chart of the last week.  As long as IWM hold $137.20, stay bullish and watch for follow through to clear $140.32 level. If bears build up power and broke $137.20, see if they hold and watch for follow through to $133.20 level.

02/27 – 03/03 S&P 500

spx     spy

As you see in the charts of SPX and SPY ( traded ETF for S&P 500 ) market have a clear move, with higher highs(HH) and higher lows(HL) from 11/09 when Trump was elected as president of US, also we have a accelerated trend line ( with purple on SPY chart).

The prior pivots for trading this week is 2355 and 2368.25 on SPX (235.50, 236.90  for SPY ) which are also the highs and lows on weekly chart of the last week. As long as SPX hold 2355, stay bullish and watch for follow through to clear 2368.25 level, trading strong sectors/stocks. If bears build up power and broke 2355, see if they hold and watch for follow through to 2351 level and after to 2336 level on SPX ( 235 , 233.50 for SPY), trading weak sectors/stocks.

 

 

Introduction

Hello to everybody, today I will make an introduction to my trading strategy and how i find stocks for my watchlist, so let’s start .

Trading intraday I will folow this simple rules :

  1. Stock selection :
    • Stock have a clear move, with higher highs(HH) and higher lows(HL)  for uptrend and  lower highs(LH) and lower lows(LH) for downtrend, on the daily chart.
    • If the market goes up continuing to make HH and HL , i will give priority to strong stocks on the way up  as long as they continue to make HH, HL and vice versa for market going down.
    • Always give priority market to leaders.

    Every monday I will post a list of stocks that I follow.

    Example of strong stock :

    amzn

    Example of weak stock :

    xom

  2.  Entry point :
    • Always trade versus a level.
    • Stock is showing relative strength/weakness.
    • Trade continuation setups only if stock is at all time hi. (long in bullish market)
    • Always buy/short from a pullin/pullback.

     

    For a list of patterns that I trade you can visit the http://chartpattern.com/

 

The way I trade and my approach to uptrending markets differs greatly from downtrending ones. Markets go down a lot quicker then they go up. I am a lot more aggressive when playing the downside (more size intraday) and more patient (buying more pullins, adding as stocks come out of bullish patterns) when buying stocks in an uptrending market.