Hey Guys,
The market is still all over the place. The bulls seem to be winning so far this morning, but yesterday the bears were the clear victor. It's a choppy market environment at the moment.
As I pointed out yesterday, there are very few stocks right now that are in a strong uptrend, which naturally causes my risk exposure to be limited since I trade pullbacks on uptrends. There just aren't many trades that meet my strategy criteria right now. It actually ends up protecting my downside in a choppy market condition like this. But it feels weird because throughout this year I've almost always have a nice array of stock and options positions. Right now, though, it's very limited. That's by design and it matches the back tests. So it's up to us to find a way to live through periods like this in order to reap the potential long term rewards that these trading strategies have to offer.
That said, AJG was close to triggering this morning. It didn't quite get there, but that one might be coming our way this week.
I'm expecting another MES futures trade to set up relatively soon, maybe this week. Since SPY is riding the lower Bollinger Band, it means that the MT1 strategy is going to be in our future at some point. Once the price has stayed fully above that lower band for two days, then I'll be going long. Once I make the trade, I'll post the SPXL equivalent too so that people who only trade stocks can also follow me on the trade if they want.
One other note is that I've been researching ways to trade options equivalents for my futures trades as well. I'm not yet done with it, but I'm near the finish line. I will make an announcement once everything is ready. That will provide more options trades we can make during market conditions like this.
If you have any questions or feedback, I'd love to hear from you.