Big Wave Series

Waves really kick up at quarter end, and as much as I am yearning to be back in the index futures arena, these conditions could vanish.  In the past when conditions perk up, I abandon my intermediate term stock swing strategy for long term while my energy is focused on day trading.

This time around I intend to do a little of both.  There are essentially two types of day entries to trading.  There is the longer swing trade, which can occur intraday, and then there is the scalp.  When working a hypothesis, that is a swing trade.  The entry into a swing starts with a price level in the hypothesis.  As we travel further from the entry and closer to the target, all you can do is scalp.  My plan is to have 3-4 setups in stocks I am watching for the day and when an intraday swing is setting up, enter both the stock and futures.  Too many times a hypothesis move occurs but the stock I choose does not participate.  Conversely, many times a stock I choose will start to work while my futures entry stops out as the market continues.

This is the proverbial chicken before the egg conundrum.  What moves first?  Stocks then the market or vice versa.  One would think stocks would move first then the index because stocks are the underlying value of the index but it does not always work that way.

Today I picked up Zillow once the buyers emerged.  What turned out to be a wonderful swing hypothesis (see primary hypo-morphed-to-hypo 2) was wasted.  It was the proverbial kick in the butt to return to active futures swing/scalping.

When the tide shifts, it is our job to read the currents and adjust.  If the Nasdaq keeps this speed up one would be negligent to not pursue the opportunity abound.