Stock Market Update for Swing Traders and Investors
Powerful swing trading strategy for traders who wish to always trade with the trend and enjoy a high percent win. Losing swing traders can start here to change results and find consistent profits in today’s tough markets.
Warning – stocks are risky investments. Consult with a professional advisor and learn about the risks of trading before making a decision involving stocks and other markets.
Sure enough as predicted it was a tough week to trade last week, with stock prices whip-sawing back and forth each day as price trades in a medium-termed symmetrical triangle. We may see another week of directionless price movement, though each day may be volatile in itself. In other words, the stock market will likely move a lot but not really go anywhere. Take small positions in the coming week until a clear signal develops.
Stock Market Update for Short Term Swing Traders
Short term swing traders should stand back a bit and allow price to show us which way to trade. Observe the chart to the right (click to enlarge). Price has jumped back and forth every day or two but does not really get anywhere – frustrating many trades and taking out stops. Take things easy. There is no reason for your account value to get chopped into oblivion. Wait until the triangle is broken for clues in which way to trade and then pounce on a few trades in that direction when it breaks. Look for a pullback toward the extreme of the triangle and then pounce again when price resumes in the direction of any breakout.
Stock Market Update for Medium Term Position Traders and Swing Traders
In the medium term stocks have been moving up, but are now approaching sideways movement. Still, we have the green light to remain long in our growth stock trades. If you have set-ups that you really like go ahead and take them to the long side. Just be sure to set your stop loss cuts and do not be upset if you lose a bit of capital. Risk is what you get paid for in the long run and variance can be brutal – you win some you lose some.
Stock Market Update for Longer Term Traders and Investors
Two weeks ago price bounces sharply back below its 200-day moving average. At this time price continues to flirt with this average and should eject to either side, bullish or bearish very soon. I would not gamble with a bet in either direction. Dollar cost averages should stand aside and wait for price to head back south. Value investors should not be in the market for the most part until the 200-day moving average is violated – that is to say that stock market prices begin to trade above these averages. Observe the monthly chart of the SPY and the 200-day moving average. Click to enlarge.















