|Day Low/High||5.20 / 5.64|
|52 Wk Low/High||1.42 / 7.94|
You have the power to keep working to adjust your position size so that when a trade does work as hoped, you can maximize your gains.
The best thing that can happen to this market technically are some pullbacks.
My bread and butter trade is to find stocks with solid fundamental stories and then aggressively trade the volatility around core positions.
Here is how I plan to trade them from here.
The main themes are bitcoin, cannabis, stocks priced under $10, small biotechnology, and small-caps in general.
Study those charts and be ready to act as things develop.
Even the solid gains on the major indexes fail to show just how good individual stock picking can be right now.
It is important to be selective with your picks, and it is even more important to move quickly.
This looks like consolidation after a big run rather than a major shift in market character.
The ability to execute options plays at cheap prices is a big change from a quarter-century ago, and small investors would do well to employ them.
This small specialty company focusing on drug delivery has a growing revenue stream.
We are due for a bounce and the earnings tonight are a good catalyst but then what?
I expect the indices will jump around again soon on news about fiscal stimulus.
Even when the story is good, the chances of a great trade are enhanced when technical conditions are there to help drive it.
Smaller stocks that were big winners are coming back down right now, and here are some on my screen.
This is the same sort of rotation that we saw in early September.
There are a couple of things that are helping to contain the selling.
There a several names that I expect to see strong earnings results from.
This isn't a market with a lot of very extended stocks so the chances of catching some names at support are good.
Stock picking isn't working nearly as well today and that is a warning sign we have to heed.
I'm not going to be distracted by all the whining about the 'big picture'.
This is a great market for trading, so trade it.
Don't be in a rush. The key to accumulating stocks in this environment is to move incrementally.
This has been a narrow market, driven by some big-cap technology names and now the most severe corrective action is in those same names.
What's most interesting about this market is how market players continue to hunt for entries despite all the warnings and negativity.
Here are several names I'm looking to build on further weakness.