Hey Guys,
After the market bounded upward four days in a row, it put on the brakes and has been hanging out in a tiny range the last few days. It's almost like the market was in some sort of race and then suddenly fell asleep.
There is no new trading activity to report today. I've had one week straight with no new trades, and that's odd but not unheard of. Back tests reflect plenty of periods just like this. On average there are 6-8 trades per week, and some of those weeks have a full slate of 10+ trades and some of those weeks have none. Each week brings its own set of emotional charges, including the weeks with no trades, and if we want to reach the long term potential of this trading approach then we have to be prepared to live through it all.
The watch list is also thin right now. Pfizer (PFE) might have given us the best odds of a new trade today, but instead of going down to the Potential Entry Price that I have listed there (56.44), instead it went up this morning. For stocks on the watch list, I only buy them if the price comes down to the Potential Entry Price listed. I have buy limit orders set up for those stocks each day, and most of the trades I post come directly from those orders.
Even though the trades have been scarce, the scan has been generating lots of results. There were 74 tickers on the last scan. That means our pipeline is full and there are plenty of stocks in an uptrend right now. So I'm just patiently waiting for them to pull back and meet the back-tested entry criteria for our trade strategy.
If you have any questions or feedback, I'd love to hear from you.