The Weekend Shift – Episode 16
The Price Action
Is this gonna Go?
The broader averages and the Weekend winners
- ADOBE (ADBE) 1-3 DOWN
- DECKERS (DECK) 2-2 CONTINUATION
- UNION PACIFIC CORPORATION (UNP) 2-2 REVERSAL
- JOHNSON & JOHNSON (JNJ) 2-2 CONTINUATION
- ELI LILLY (LLY) 2-2 REVERSAL
- NOVAVAX (NVAX) 2-2 REVERSAL
- TARGET (TGT) 2-2 CONTINUATION
The spread is the difference between the Bid and the Ask. When trading common this is usually close together. When trading option this can be a totally different story.
What do we know to be True?
Trade what is happening right now.
We all have to admit, this week was not the easiest week ever. There still were some good opportunities out there if you looked for them, especially if you had the right mind set. It’s easy to be cynical when you had a rough day, heck even a rough week. What is most important is understanding that this is not a get rich quick scheme. This is still hard work. Trading is hard work, plain and simple. We have to keep a positive outlook on what we are doing so that we can see the reversals presented to us. If we are in a negative mind set, we will naturally block out any notion of success. When the market is flat, look for the natural buyers and sellers. They will stick out like a sore thumb. Then look for reversals into those stocks. Trade what you know to be true. For example, this week, General Mills and Allstate were working toward the highs on 2-2 reversals on the week, when the rest of the market was puking to the downside. These were stocks that had natural buyers. They are defensive names as well. It was obvious that the market was dumping T ech and buying cereal and insurance. This is a funny way of saying it, but it’s true. I use humor to keep my head in the game. I may not always be in a winning position, but I am always making decisions that I know to be true. What did I know to be true? They dumped Tech and rotated into XLP. This the Consumer staples ETF. All you had to do was listen to Rob call the tickers out that were doing the same thing as the main XLP chart.