04-20-14 Trade Plan

How quickly things can change in the equity markets.  This is why you need to always be very flexible in your trading and have a plan for either direction.  For me the plan was to stay away from US equity markets until the charts were a bit more healthy and focus on emerging markets, bonds, gold, oil, etc.  This changed very quickly when I saw low risk long entries all across the energy sector with a very good chance that the $SPY could make small consistent rallies into the end of the week.  Whether that $SPY bounce was a dead cat or not, it would be enough to set off the energy sector to the upside and it played out so beautifully.  So onto next week..


I still like energy but it is completely reliant on whether the S&P can continue higher or not.  We are still in a market being led by utilities and I don't like that.  Bonds are still looking good on the trend higher and gold is looking vulnerable to taking out that key swing low at $123 area.  I won't post a chart but I am also still interested in $USO to the long side.  On the other hand at the end of last week the emerging markets started to poke their head up, so I will be watching those closely for long side trading.


Yes, I am even interested in Russia.  That rally on Friday has a very good possibility that was the start of a large short squeeze, and if they are going to squeeze em, I will join the squeeze.  I love squeezes.  All the other candidates are just the regular trend based trades.  That is about all I have I will be focusing on and if anything changes I always tweet it out.

Trade well,
-Michael