Broad Market Outlook
The overall magnet near support continues to slowly pull the major markets and sectors closer toward there respected support levels that ultimately should lead to a shake out lower. Except for Energy and Utilities as there magnets continue to pull them higher in this current trading environment.
It still seems to be an ultra specific market where you need to be the sniper, sitting back in the hills in a ghillie suit waiting for your one and only shot. For myself personally, this was the first week in a while where the buy stops were triggering and hitting there marks. BKNG was a nice support buy back on $50 points risk that went for $200 points in 3 days. CTVA broke out nicely on $1 risk that went for $3. Then I missed a shot in BXP when I took my eye off the market and forget to follow the 15 minute rule resulting in a small loss.
After going 2/3 on the week I was reminded of the importance of the 15 minute rule during a trade review with Oscar. We were going over a few of his trades and he had a few, where had he followed the 15 minute rule, he could have realistically broke even or even made money in the failed trades. The ironic part was as we were doing this recap, I ran through my current swings, only to see that I was prematurely stopped out of a winner (BKNG) for failing to follow the 15 minute rule (to the upside), where I could have still been in the trade. Then pulling up BXP and seeing that if I too, used the 15 minute rule, I would have been able to turn that 2% loss into at least a break even trade.
Even though I gave some profits back unnecessarily and took a tiny loss that could have been avoided, it still felt good to hit a few targets from down range this week. To help keep the momentum and confidence into the next shot.
Scanning the market, I still can't seem to find anything that looks better then Django's call on this CIVI and maybe it still might need a few weeks but I will make sure that buy stop is in for when its ready to go. What is your top idea that you are lining up your scope for to take your shot this week?
If you are feeling trigger shy lately as the market has not been quite bountiful from a swing trading standpoint, all you need to find is 1 good idea. Trade light and focus on locking in even a small winner to build that confidence back up and if you can't find something worth shooting at, there is nothing wrong with looking through your scope with your finger off the trigger.
Macro Rotation Outlook