09-14-14 Trade Plan

For the NASDAQ this was the third week in a row of nothing happening and the Russell is having a lot of trouble holding up.  This week there really isn't anything to talk about, not many setups and choppy action in the indices.  That makes me not want to trade much and pull back money.  My trading style is aggressive when price is moving well and retreat when things aren't going smoothly.  So lets look at where we are at.


Like I was saying last week I'm paying attention to the 130m trends specifically in the NASDAQ and as of right now it is holding within it's consolidation and the 130m trend so there is still a chance for bulls to take control again.  I just want to see a higher low above $100 on a lower time frame before interpreting the green light and looking for stocks.  Remember the NASDAQ is leading this market, so that's why I put importance on it.  Russell is just a mess but still holding above $115 and is still in YTD positive territory so it's just a wait and see moment for me on this one.  If $115 breaks that tells me it's time to move on from the Russell.

Not much of a watch list right now but there is nothing standing out and still need to see more action out of the indices for new trends to start triggering.  I like having the wind at my back and trading the leading moves during a move in the indices.  Don't need to be in the market all the time because those winners are typically very big with clear price action.  It's not just about what you are looking for, it's when you are looking for it and how you are going to trade it.

YHOO for example has just been a perfect trade.  Holding a 30m trend and has had multiple gap ups during it.  This is what I'm looking for.  It started triggering during the move in the indices and has just kept on moving during the chop we have been seeing.  Pushing winners is key and is exactly why this intraday trend following has made my life so much easier.  I'm not just touting a winner after the fact either, I've been talking about this with you guys all the way up.  Anyway, thanks for reading.


Trade well,
Michael