Are you using moving averages?
Here is a simple plan that flat out works, in any time-frame… I will demonstrate using the $SPY from 2-25-16.
Easily one of the biggest problems using a moving average system is the trigger will lag actual price. By their very nature, moving averages are slower. For this system we are going to use multiple moving averages and add a twist, we will add the close of the candlestick, as an extra trigger.
** I will give you the components and the plan. I will leave it up to you to complete the picture. Let’s have a discussion in the comments… 🙂
- Starting at 12pm on the $SPY chart below, use the 50 sma (heavy dotted line, as you main trend, nothing else in the stock market matters. This is your bias.
- The 20 sma is your momentum, and your trigger for entries and exits.
- the 5 ema (*note exponential here) is your slow entry and exit trigger, for half of your position.
- The close of the candlestick on the opposite side of the 20 sma is your fast entry and exit trigger.
- 5 minute chart.
- 50 sma.
- 20 sma.
- 5 ema.
- 5 minute candlestick.
Pete’s Day Trading Notes:
- Financials in a trading range now, short-sale not as obvious.
- Yesterday afternoon the first sign the bears may be in trouble.
- The quarterly bias for the stock market is neutral. Still in day trade mode.
Stock Market Today: Map of the S&P 500
(click the map for a full view)
–> Top 25 Proprietary Trading Secrets
$SPY Strong Not Over Bought Next Target $200 | 2-26-16
— Jeff Macke (@JeffMacke) February 24, 2016
Chart Reading the SPY ETF
$SPY bears lost the short-term battle at $194. The next level for day trading is $200, I don’t think the bias is strong enough for a swing trade. This is a day trade for now despite closing above the 50 sma on the daily chart.
(click the chart for a full view)
Technical Analysis | Charts of Interest
$UTX on finviz.com
#UTX | UNited Technologies Corp. | A Day traders dream yesterday…
United Technologies (UTX) Stock Climbs, Honeywell Legal Adviser: Deal ‘Doable,’ Jim Cramer’s Take
NEW YORK (TheStreet) — United Technologies (UTX – Get Report) stock is up 4.79% to $98.09 in afternoon trading Thursday, following comments by Honeywell (HON) legal adviser Christine Varney that a merger between by two companies could be completed.
Technology and aerospace company Honeywell confirmed earlier this week that it has held takeover discussions with United Technologies about a merger that would create an industrial giant with about $94 billion in sales.
United Technologies CEO Gregory Hayes told TheStreet’s Jim Cramer in an interview on CNBC‘s Squawk on the Street Tuesday that a deal with Honeywell “ain’t gonna happen” due to regulatory obstacles, but Honeywell has nonetheless continued to pressure the company to engage in merger talks.
Continue reading on thestreet.com
(click the chart for a full view)
Stocks to Trade 2-26-16
Short-Term Trading Momentum:
Positive the last 20 and 5 trading days | closed 2% higher from the open: CLR, TRGP, ENB, MBLY, UTX, DLPH, AGN, FSLR, NKE, LNG, LRCX, VMW, DD, VFC, SNDK, TGT, DUK, CB, MAR, IR, KORS, NCLH, AER, WMT, JNJ, IBM, TJX, FB, UAL, AEM
Negative last 20 and 5 trading days | closed 2% lower from the open: ar, mur, crzo, ions, lgf, gpor
Quarterly Order Flow:
Bullish Stocks to Trade: UTX, FSLR, NKE, SNDK, TGT, DUK, CB, KORS, WMT, JNJ, AEM, TJX, FB, UAL, ITW, NEE
Bearish Stocks to Trade: gpor, lgf, wnr, ions, crzo, apa, viab, wdc, mpc, pnc, lnkd, myl, gs, car
2x Normal Volume: CRM, ETP, UTX, WTW, ENB, CAR, ADSK, SFM, TRGP, FL, PANW, TRN, SPLK, LB
Inside days: jd, epd, bidu, rio, pke, ntap, ctrp, stx, lgf, urbn, im, eqt, csiq, gmcr, peg, mchp, bbby, chrw, rtn, tif