Good evening all. Let’s not waste any time, and jump right into the thick of things.
On Friday we saw a strong bounce in the market off of the 50 day MA. After the strong hammer candle on Thursday, I was expecting to continue the bounce, which we did. With this bounce, we closed over all of the MA’s as well as a resistance line and the short term downward trend line. As far as I am concerned, we are headed north for the week to come! The chart below is of SPY, but DIA is very similar and on the same idea.
Now, while I am 99% a technical trader, I do pay attention to stocks earnings reports as well as more of the important general reports that have the potential to impact the market. This week, there are two to keep an eye on which will both be reported at 8:30AM on Thursday: Retail Sales and Jobless Claims.
As for this week, I completely expect the market to be bullish. I haven’t examined potential trades as of yet, but I would expect anything I plan to get into will be bullish position. With oscillators resetting and starting to turn up, I think it is wise to embrace the bullish trend, keeping in mind stops and taking profits at targets.
As for my personal account, I got stopped out of CAT and BBBY. BBBY closed for a 22% loss and CAT was stopped out for an 18% loss. I only had 1 contract in each of these, so although the percentages are large, my actual loss was small.
In addition to these losses, I entered in HD long with 2 August contracts. I am currently sitting at an ROI (return on investment) of 16%. This basically erased my losses from CAT and BBBY. As for the other picks I had made on Thursday night, VZ never reached my target, COST was not moving strongly and AAPL reached my first target too quickly and so wisely, I did not get in as AAPL finished the day in the green.