MAKING MOVES TO THE MIDDLE

If you dissect this multi-year range in stocks, you’ll find that the Nasdaq point of control is right here, at 4296. This also happens to be today’s low.

Earlier this year when attempting to give a longer term view of the markets, I had mentioned that after a good strong rally that a move back to the middle was possible.  We’ve spent a lot of time speaking about the divergence in small caps for the last two weeks, but in the mean time, the Nasdaq has been the first to make that move. Right back to the middle.

Should this level fail, and with small caps starting to respond to the overall weakness, fair to say that things will likely be dicey in the near term.

OA

Back on the 18th we had the following discussion, between myself and myself. I mentioned the following:

LOOKING FOR BURIED TREASURE – Options Trading with Option Addict

Back on the 19th, I posted this blog titled  “The Angle May Change Here.”

Thus far, the charts have done exactly as I had mentioned. Here’s a quick look:

4/19

Current

I’m watching this developing wedge pattern here in the Nasdaq as well. If they clear 4430 in $NQ_F….as they say, “from failed moves come fast moves.”

Sign up for my Boot Camp today.

Ladies and Gents,

Just in time for “Sell in May and Go Away,” I am announcing my next project. Moving forward I am going to continue the Boot Camp offerings on a quarterly basis. I’ve scheduled my next boot camp presentation for May 23-27 on the topic of “MY GUIDE TO PICKING STOCKS.”

This boot camp will be the most comprehensive camp to date. I’m very excited about it. I’m very passionate about this particular topic, and I feel very strongly that there are certain things that I can show you to help you know which stocks to pick and when to pick them.

Because of the current market environment, it’s critical we attack this topic now. Not to mention, over the last 4 years, May-July has been my best performing months in each of the last 4 years time.

Here’s the agenda for the event:

Monday: Stock Market or Market of Stocks

Certain market environments are more conducive to picking stocks. Others are better to trade market direction. I’ll give you triggers to always know what to expect from the current market environment.

Tuesday: Measuring Risk Appetite

Each stage of a market cycle will produce a different level of risk tolerance and appetite from its participants. As I show you how to measure this, you’ll be able to anticipate where traders will move next.

Wednesday: Labeling Stocks: Trash or Treasure

This is a critical step, but you’ll need to rate stocks based on historical performance data and tendencies. I’ll show you how to do this, and help you create lists to shop from at any given market rotation.

Thursday: Entry and Exit Techniques

Every few months, market rotations take place. Traders maneuver from one group or sector to the next. I’ll show you historical performance data and cycles to illustrate this, and give you techniques to anticipate this as you move forward.

Friday: Putting it all Together: Here’s a Plan

At the conclusion of our camp, you’ll have a better knowledge of how stocks fluctuate, but you’ll also leave with specific entry and exit signals to improve win/loss ratio, and a trading plan to keep you disciplined.

Each nightly GoToMeeting webinar will last approximately 60-90 minutes.

Recordings and slides will be provided afterwards, for those who are unable to attend the live webinars after market close. They will be yours to keep

You catch bits and pieces of my analysis here on the blog, but through this camp you’ll have your own checklist and plan to be able to apply the same techniques and principles I use to find the opportunities I find.

Please feel free to email me with any questions. Satisfaction on this course is guaranteed.

Sign up here. Thank you.

OA

My one and only macro call at the start of the year was to short the dollar, and take part in all the festivities that come with that. Commodities, energy stocks and materials related stocks. That was the biggest portion of my gains thus far this year.

While everyone is dialed into this range in the dollar, zoom out a bit. What lies beneath should be just as interesting as what lies above. The main factor here though is that the dollar was a very crowded trade coming into the year. If this unwinds, this all gets to be pretty fun.

I pointed out the bull trap that took place on Friday, but how this resolves will play a major role moving forward.

On rare occasion, we trigger an extreme reading in weekly sentiment polling. Last night, we hit our first 80% result for the year in favor of the bulls. These extremes don’t happen often, but they’ve been 100% accurate since launching the service in 2013.

An early market ramp located sellers above, and they’re laughing while stealing money from early bulls.

There’s an interesting divergence in the market here worth watching. Small caps bottomed Thursday. Tech bottomed Friday. The S&P and Dow…have they bottomed yet?

Watching to see if we have buyers below, but I watch for these divergences specifically to keep me in a trend or not.

OA