CMA

CMA with the lower highs and higher lows, hovering around the ema(13) and  forming kind of a continuation pattern

A closer look with the 2 hours chart

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Swing trade with the percentages

This is a fair enough indicator for swing trading

Take a look at the SPY and the crossing of the percentages

The percentages

Two of my favorites sectors to trade are banks and transportation stocks, why, certainty, you see, is very unlikely that a bank whose stock you are long fails a Food and Drugs Administration test sending the stock 50% down in minutes, also if you are short, a transport company is not going to invent the internet or something, doubling or tripling the price quickly. Most of the times I avoid tech and biotech stocks.

Now with that preamble, take a look at the charts:

In the general market we are seeing an increment in volatility, of course that in itself is not conclusive, only meaning you have to tight your stops and start looking for some shorts, but still cautiously

Even though the majority of stocks as of this moment are undecided about up trending or down trending, still the percentage of stocks in an uptrend is above the percentage down trending, generally speaking.

Banks are behaving almost in tandem with the general market, volatility increasing but stocks in an uptrend surpassing those down trending.

So with banks and every group is like that, look for alignment of volatility and trend tendencies, right now, I lean a little bit to the downside, let’s wait for next week action, these are only probabilities, people will decide.

Transportation stocks are starting to going down, will it hold?

Percentages of stocks in bullish/bearish territory

Here are industries and indexes in bullish and bearish territory as of the close yesterday.

I’ve been long for a while now in transport via the XTN and IYT etf but they are low volume, so if you trade a big amount maybe is better to look for the leaders in the industry.

I’m still long the DOW with DIA, and been short for a while with IYR. However the etf keeps going up even though the majority of companies in the REIT industry are on bear territory, it has to do with the major holdings.

Financials jumped to short territory yesterday, futures are up this morning so let’s see what the day brings.

Shalom all,

Insurance

Is one of the industries that jumped to positive this past Monday.

I used an indicator without smoothness for this chart, although it produces more trades and some whipsawing the results are positive if you trade with consistency.

I used the KIE etf, Let’s see the numbers:

From close to close:

Jan 28 – 30.08 short

Jan 30 – 30.12 cover and long: Loss -0.13%

Feb 4 – 30.77 sell and short: Gain +2.12%

Feb 5 – 30.82 -cover and long: Loss -0.16%

Feb 6 – 30.83 – sell and short: 0.00%

Feb 11 – 30.75 cover and long: Gain +0.01

Net: 1.84% (2 profitable 2 loser trades), 13 trading days