What a difference a week makes!
The market caught traders off guard this week as it continued higher breaking the most recent swing high at 10314.84 that was set on February 2nd.
In our last "Week in Review" we advised that although we had a SHORT bias we were still taking LONG trades in stocks with strong chart patterns.
And as Tuesday rolled around and the markets gapped higher we were glad we were on the LONG side of the market (even if only a few positions).
Most of the SHORT set ups never materialized so that kept us out of any new SHORT positions while the market continued to move up for the entire week!
As the markets closed this week it looks like we are due for a little pull back after this "slingshot" type rally we have had from the lows on last reversal Friday…February 5th.
We entered into several new SHORT swing trades on FRIDAY based on the price action, volume patterns and chart patterns that revealed themselves by the end of the day.
Its hard to enter into any new LONG positions since the market has come so far, so fast this week.
So what do we do next week?
We follow our plan.
We look for WEAK stocks with LOW RISK/HIGH REWARD charts patterns to SHORT and LOW RISK/HIGH REWARD chart patterns in STRONG stocks to get LONG.
With the market acting the way it is we will continue to dabble a bit on both sides of the market.
Until next week…Good Trading to YOU!
Tags: ETF Swing Trading, Stock Market Update, Swing Trading Chart Patterns, Swing Trading Price Action, Trading Volume
