My video last evening revolved around the idea that we are at the upper end of our multi-month trading range. Since late May, it has been a huge mistake to turn aggressively bullish at the top of this range. As you might imagine, sentiment has now turned bullish, and the prospect of chasing extended charts suddenly seems in vogue. While I would welcome a breakout of the range, I will not aggressively position for it. To my eye, 1130 on the S&P 500 represents the last stand for the bear thesis. We closed at 1109 on Friday, and the futures are currently shooting higher. A continued drift higher is likely, but I do not see enough momentum behind the move for me to see a clear edge.
Despite my cautious stance, I am keeping an open mind. More importantly, I am going to be prepared in the event we see a March or July of 2009 type of melt-up. The market does what it does, without regard for any of our wishes and desires. To be sure, it would be healthy and constructive to see a 3% pullback from these levels. However, a nice, orderly, predictable market is usually not in touch with reality. We simply must accept the market that we actually see, not the one that we would hope to see transpire.
Below, you will find my best trading ideas for the upcoming week. I have noted on some of the charts where you should wait for a slight pullback before adding. Feel free to pick and choose whichever setups best fit your style. Please keep in mind that these are trading ideas only. I also urge you to use stop losses in order to mitigate your downside risk–I prefer a trailing 7-8% stop loss.
I hope you find these ideas helpful.
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love the ICO look
Good set ups. I’m already in HOGS.
Great ideas, got involved with RAX on thursday…loooovely!
Sold my TWM (now 100% cash).