My Stock Trading Plan for Monday November 7, 2016.
Election Trading
Premarket reports will not be detailed until after elextion.
I’m sitting tight and will trade scalps until after election. After election we will start on algorithmic trading main targets and trendlines and work with traditional indicators that I use for my trades. So for now I’m not going to get to detailed with pre-market trade plans but after election you will see very detailed trading plans for each algorithm we have in development.
Momentum Stocks
I will at times take first 30 min momo plays if and only if I think I can secure a stop that is tight and get immediate momentum on my side… I know a lot of rooms will take these plays regularly… but they aren’t normally my style because I want clear risk reward on my side and a predictable exit on my side. Compound trading works well if disciplined (and it mitigates unnecessary risk). Nonetheless, I watch morning momo plays not only for the first 30 mins but also, and more importantly, they are often the stocks I trade later in the day when they snap back after a downdraft or they continue to trend (I am looking for technical indicators such as a trending moving average, increased volume, continued trend, and more). 1 snap back or continued trend per day at 1% (or .20 cents on a 20.00 stock) over 26 months is 10k to 1.14 MM or it can be done in 6 months with 4 of these trades a day…. but it has to be low risk so you can execute stops or manual exits with-out stress and undo risk.
So just prior to open and shortly after open I post momentum stocks to the trade chat room (and Twitter if I have time). These I continue to watch through the day for indicators that allow a trade.
Markets Today – Volatility $VIX ($XIV, $UVXY, $TVIX, $VXX etc)
Well…. Hillary isn’t guilty they say… so everyone is happy… so we have a $VIX GAP DOWN of 12.5% at time of writing… which in my thinking is awesome… A $VIX in the 19’s is closer to the 13’s or 14’s I’d like to get an entry at and is much better than reaching for 22’s and 23’s… had I only held $XIV over weekend…. but I wasn’t prepared to take the risk… I want 1% a day for 10k to 1MM in 2 years… that’s it… simple… focus.
So the snap back I was all about last week is obviously here…. but I’d be careful with holds Monday and Tuesday night… you never know… things a fucky to say the least.
I’m looking for entries on either side of the range for scalps.. for me that’s it for now with $VIX.
$DXY US Dollar Index ($UUP US Dollar Bull, $UDN British Pound, $FXY Japanese Yen Trust, $CNY China, $TZA, $SMK / $EWW Mexico Capped ETF)
From last Thursday’s trading plan…
The US Dollar was close to a Fib at 97.07 earlier so this is an interesting watch for possible long in $UUP (long) and watching $UDN close (short a basket of currencies including British Pound).
Well… it got a little better downdraft than 97.07 and snap – back happened – overnight as I write it has snapped back from 96.89 – 97.70… I trade I should not have missed – I had it set-up.
$TZA – 3x Small Cap Bear. Watch $DXY US Dollar Index – when it gets flight so does the small cap bear $TZA typically.
I will be watching other currency relationships also for Fib and Pivots and will post as opportunities / time arise.
$SPY ($ES_F, $SPX etc)
I don’t have much to say other than… there’s the snap back and remember to watch the pivots… same here… buy the blood in the streets and buy the over extended pivots and Fib levels (for those that don’t understand pivots and Fib levels – we will be getting in to those indicators after election in detail in the room).
FX: $USOIL $WTI ($CL_F, $USO, $DWTI, $UWTI #OOTT #Algo)
There was a recent time / price cycle change. @EPICtheAlgo is expected to have updates on his Twitter prior to open. Generally speaking it was in a downdraft near some support but at significant risk… but likely a tad over-sold.. and I see at time of writing it is up in over-night trading. I’d be very cautious though – but that’s just an opinion. We’ll see what EPIC’s calculations look like.
Gold / Gold Miners – $DUST $JDST (Bear) / $NUGT $JNUG $GDX $GDXJ (Bull) / #Gold $GLD
Gold, Miners, Silver I was looking for on floor down over last month per my posts and this now may do it. We will watch to election and then start putting out our algorithmic charting and traditional charting and trade it.
Silver – $SLV, $USLV, $DSLV
As above.
Natural Gas – $UGAZ, $DGAZ
I continue to watch per previous.
So it’s really all about our current rally, staying nimble through election and then on to charting and trading thereafter with detailed set-ups.
Good luck!
Free Scanners to find momentum stocks that you can easily review charts of for indicators that bring probability of your trade being successful up considerably. These are not useful for first 30 minute super-nova type plays… but are very useful for intra day scalping (start with trending stocks and then look at indicators intra for simple set-ups).
http://finviz.com/, https://finance.yahoo.com/screener/predefined/ec5bebb9-b7b2-4474-9e5c-3e258b61cbe6
Curtis
