Another week in the books, and another week where I feel like gyro meat in the marketplace—slowly being shaven by a hairy armed Greek. Many of you know 95% of my positioning this year has been in explosive growth stocks. You should also know by now that these very stocks have fallen victim to rotation free knife drops, relentless in every way possible. I very rarely sell into weakness, instead waiting for a bounce to cut my losses. Well, I would not be so fortunate this time around.
My losses stand at -20.13% year-to-date and 28.9% off of my high water mark which seems so very distant from here. That’s how downward price actions works, six months of gains can be wiped out in one short week. Never one to dwell in the past, my sights are set on my next meal. My next opportunity continues to ripen but if I do not act soon it may spoil. I must begin taking my trades in the Nasdaq futures.
I have done extensive research into this product and feel I understand its behavior more than any financial instrument traded. I like the large daily ranges of late and see them as a tremendous opportunity to day trade. I also like how the long term auction has come into balance. Take a look at the following monthly chart of the E-MINI NASDAQ 100:
Some people find intraday chop to be maddening because they are constantly seeking swing trades. They seesaw nature of balancing nauseates participants until they puke out and exit the market. But if one is aware of the conditions they can either choose to sit them out or stick to one side of the tape and carefully pick where they want to do business. I was aware the Nasdaq would potentially enter these conditions in 2014, however I had no idea all of my momentum stocks would plummet. Thus here I am, very red on the year and still in simulation on my day trade strategy.
Alas, I must move my strategy live. My algos have been optimized and walked forward over 10 years of data and have performed well on live data. They are effective at determining action points, even if they result in a stop out which can be equally as telling as the original entry. The final barrier is taking the leap into live trading. This should never be taken lightly as the leverage used is greater in futures than any other instrument I trade. You need to plan every step of your method until your muscle memory is fortified like steel.
My book is about 70% cash. I have long term positions in TWTR and LO and intermediate term positions in FB and AIXG. I have a small side bet in GRNH and some dying options in RGLD and ANGI. I looked at about 500 charts last night and could not find one I wanted to buy. Thus here I am, needing a new dance to find my way back on top, back to internet glory. Get it while it’s here, boy.
See you over the weekend with more Nasdaq charts, cheers!
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seems like youre overtrading. slow down