Investing Systems Research Lab Trade Plan Status Update for Members
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Let’s a take a look at the Trade Plans from last week.
First we have a couple Closed Plans that hit Target 1, Target 2 and Target 3 last week.
The Entry price is shown in the yellow circle.
NKTR
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STX
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As of today we have several Open Trade Plans. These stocks have already hit the Entry and Target 1. Note that the Breakeven stop has been raised to the red line, so these are no-lose trades. Log in the Research Lab Trade Planner for specific details.
CSE
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WTNY
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TLAB
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And finally, the Open trade in IPXL, which has not yet hit Target 1. We may have been a little early on this entry but the chart still looks nice. We would like to see a high-volume break to the upside on this next week.
IPXL
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So there you have it. A different view the current Trade Plans in the Research Lab.
Have a great weekend everyone!
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President’s Day Weekend Market Analysis – Investing Systems Market Toolbox Research Lab
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Welcome Research Lab Members, stock-speculators and market spectators. Let’s jump right in to see where the stock market is likely headed from here.
Green box or Red box? We will know very soon…
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The S&P 500 is at a critical juncture as you can see on the weekly chart of SPY above.
We had a green candle last week and we closed above the 30-week moving average. The week ended with a higher low than the previous week.
These are good signs the market may be stabilizing after the recent sharp correction.
Next week is indeed critical as you can see above. We are either headed into the green box or the red box.
The market has yet to determine which one so we suggest you proceed with caution and let the market show us which box will contain the price over the next few weeks.
Watch the price action in relation to the 30-week moving average and the rising trend-line.
If the green uptrend line holds, we might be headed to the upper-end of the channel, which would be a huge victory for the bulls.
Conversely, we DEFINITELY want to be prepared for the potential of a move into the red shaded box. That would not be a pretty picture and would make for a much tougher trading environment.
Never rule out the possibility of a Black Swan event triggering a swift 30%-50% decline in the market. That possibility comes with the territory and that is why we use stops at all times on every open position.
Holding a stock overnight is risky and we recommend a combination of daytrading and swingtrading, taking profits quickly and being heavy in cash, especially on the weekends.
Now on to a couple patterns we like.
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We are seeing a lot of similar trade-set ups as the ones above and there is no question that many stocks are acting very strong right now.
If the overall news cycle cooperates, we could see some explosive short-term up moves up in individual stocks. Get ready if this thing breaks to the upside and moves into the green box.
We deleted RXII from the Trade Plans because the breakout did not materialize in the expected time-frame however we are still interested if we see a big volume breakout of the triangle. Keep it on your watchlist.
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A “melt-up rally” is not generally expected by the street at this point so we definitely want to be on the lookout for just that, and more specifically the stocks that will participate the most.
We watch those kind stocks every day in the Research Lab. You members know that our intra-day scans isolate kick-ass stocks every single day.
In the RL each day we have the finger on the pulse of the markets and the leading stocks. What is almost impossible to comprehend is that the Airlines, Restaurants, Retailers and Homebuilders have been among the leaders recently. This proves that nothing makes sense and you have to trade what you see.
If we break the 30-week and the channel and move into the red box all bets are off and we will move to defensive mode.
Here is the only swing-trade Trade Plan to close last week. It hit all three Targets, which is exactly what we want to see.
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January was rough and the choppiness wreaked havoc on some of our stops, especially in the case of CIEN, where the set-up was sweet, but the volatility took us out. We did mention on Wednesdays show that we still liked the pattern. We are already adapting our system to avoid some of these shake-outs.
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Recently we have had several questions on timing intra-day entries.
What are we watching specifically to help determine entry points in our trades?
Exactly what you see below, though it’s not always this picture perfect.
Above you will see a set of great entries on a 5-minute intraday chart. Pretty self-explanatory.
As you see it is not necessary to jump in a trade right at the open. We prefer to wait for the first trendline break and the best stocks will offer multiple entries as you see.
Join us live in the Research Lab as we find and discuss these set-ups in real-time with the picks from our stock scans.
Doug is a master at marking up the charts as we go. We will get into more examples and elaboration next time.
Until then…
Have a great long weekend and tune in next week. We think we are gearing up for quite the exciting showdown in the markets.
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