Swing Trading Update
Well, that was an interesting week, wasn't it?
Basically, a FLAT trading day on Monday followed by 4 straight SOLID UP DAYS.
This weeks trading left a lot of traders frustrated…but should it have?
S&P 500 ($SPY)
We took off like a rocket on Tuesday after trading down to a key level on Monday.
This weeks move brought us right back up to the 50-day MA although it was on decreasing volume.
DJIA ($DIA)
Same story here in the DJIA.
FLAT Monday and 4 days up right back to the 50-day MA.
$SBUX
There were some strong stocks like $SBUX on the move to the UPSIDE this week after showing relative strength to the overall market.
Other strong stocks bucking the trend included $V, $LLL, $WMT, $DIS, $CB and $MA to name a few.
SUMMARY
So should this week have frustrated so many traders?
Well, I guess that depends on your strategy.
If you were SHORT and you are a LONGER TERM SWING TRADER then the big retrace was probably an unwelcome one.
If you were SHORT and you are a SHORTER TERM SWING TRADER then you may have covered your SHORT positions (for a profit) during the last move down. Or maybe your TRAILING STOP got hit on the retrace. Not so bad.
If you were looking to get LONG and you were buying STRONG STOCKS (like $SBUX etc.) expecting a retrace in the market then you may have been ok.
If you were looking to get LONG and you were buying OVERSOLDstocks/ETF's for a "bounce" you were probably ok also.
So, in our eyes, there weren't too many reasons to be frustrated with this weeks trading.
The frustration just depends on your perspective (and strategy) for trading this week.
What happens from here?
Time will tell but as always don't try to outguess the market.
Let your charts tell the story and stick to your strategy…if it's a sound one.
Until next week…GOOD TRADING TO YOU!
After a 2 day stall to end the week last week the DJIA saw yet another move to the upside this week.
