Sensible Driver Ahead

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Get ready for the week ahead. It will be an interesting one. Earnings accompanied by the Fed rate decision on Wednesday and a bunch of profit-taking to spice it all up.

Methods change

We are now officially in a sensible driver phase of the market so get ready for the rocky road ahead and watch for those support levels to hold.

Do not look to trade breakouts unless from a good base such as DB.

Pullbacks will offer better opportunities now so buy AT or FROM support.

It is best to lower risk or reduce the frequency of buying due to an increase in noise as a result of earnings and profit-taking.

For current positions and based on already having good profits, consider managing them by either taking profit or moving stops closer than usual. So if using ATR 30×6 as a trailing stop, maybe revert to ATR 30×3 or closer.

We are still looking for long positions but as we are going through a rotation, we are waiting for the best opportunities to present themselves. This will be more apparent after the Feds rate decision this week.

Let’s go trade!