The market wants to breakout, my bones say. It has pushed
its head above the sideways range it has been bound by. But I don’t follow what
my bones say and without my ICE buy signal on SPY, I will stay out on my 401K
and only trade individual stocks like GD, SU, TAN, CL and look towards trading NASDAQ
e-mini futures (NQ) using a daily system. That is likely to move a lot more. Even 1
contract of NQ can move $1,000 on a daily basis… and I will only be watching it
end of day. The charts do not show any real signs of breakdown yet. But one can make a lot more money on NQ when the markets fall...
I have been reading a book called “Timing the Markets”. I
will write about it after I finish reading it. Interesting theories combining
the November – April buy stocks and sell in May, along with Presidential
election cycles, as we are now in mid-term. Research done by Vakkur. I was
surprised to find that we have not had any down years during an election year cycle
over many past such events. I will have to do some research on this myself. Combining
the two with technicals and loading up sounds very attractive.
SU has now given a down signal and I have an open sell order
on limit for my Call options for Tuesday. Today is Monday, memorial day and a
holiday. I will buy put options and look to trade the down side on it, although
I don’t expect a reversal as it made such a strong mover upwards. But mine is
not to question and follow my signals.
See chart on SU below.
Next I have a sell order on GD which I have been trading in
and out. Fairly frequent signals and it has done quite well. See chart on GD.
Finally I have a trade active again on RFMD. Just got in.
Also see a buy signal on TAN and I will go ahead and place a trade on that as
well for market buy tomorrow morning.
I missed taking advantage of the upward momentum from the
Indian elections. After Narendra Modi (NAM) was elected, the Indian markets
have been on a tear upwards. There is a lot of hope that he will fight the
lethargy and old school thinking that had pervaded the previous Government..
Rahul very interesting post. ..great call on SU...interesting synopsis on the book you are reading, as well as the note about the happenings in India...keep up the great work.
ReplyDelete