While the market in general had a "rough" January to say the least, our trades turned out pretty good. Here is the official record now that all positions are closed.
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The nice thing about the Trade Planner is that it is very visual and the screenshot above pretty much tells the story. It’s interesting sometimes to look back at the trades with current charts to see what kind of moves occurred after the trades were closed. In some cases we find the stop was just a little too close or the trade was identified just a couple days too soon. While it’s fun to reflect the record speaks for itself and is history now. The scans did not not identify as many trades last month as in December but the market was choppy and the patterns were harder to find. A couple of the trades were still open as we went into February and closed out in the first week of February.
Our system closes a trade as soon as it hits Target 3 however some of the stocks went on for even bigger gains. For instance lets see how ACH did after hitting the targets.
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The yellow line on the chart above is Target 3. Nice continuation move.
Let’s take a look at where the overall market stands. Here is the "triangle" pattern we have been discussing.
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There were a couple days where it looked like it might break to the downside, then we got the unexpected rally on the jobs numbers and we are pretty much square in the middle working our way toward the apex. If we break this pattern to the downside there is support at 800, but if that is taken out then the market is in the extreme danger zone. Conversely we can expect resistance at the top of the triangle. We won’t try and guess which way it breaks out of the pattern but we do expect to see a substantial move in the direction of the break. Stay tuned…
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