Market Orientation & Bias: Neutral to bearish

1. Recap of Last Week

Last Week’s Post: CLICK HERE 

A. General Recap

Since there was no post last week since I was at the beach we will recap the past two weeks together, which should not be too difficult given that the past month or so there is has been VERY little trend in the overall indices.

Essentially for the past couple weeks we have been dead in the water, no trend either way and the candle sticks that have formed have been very sloppy. As a trader, the candlesticks that you want to see are the solid candlesticks with small-ish wicks, not many ‘large’ bodied candles in a row and a trend that is easily identified. This has been far from the case, as you can see in the shot below of the $SPY chart, the past couple weeks have been the exact opposite of this. No trend and sloppily made candles.

Some may say this is indicative of a top being made, and it very well may be BUT that simply is not actionable. What is actionable is the QUALITY and QUANTITY of set ups in which we find. Needless to say, this is lacking as well.

3-29-14 spy

2. Strategy For Next Week

A. General Broad Market Thoughts

As for a strategy for the next week, it is going to be hard to implement our core strategy with great effectiveness. This strategy is swinging strong stocks that are breaking out to new highs in a healthy fashion. We have not seen much of this lately thus we will have a cautious mindsight until a trend changes and the QUALITY and set ups return.

Strategy: Do nothing until HIGH QUALITY set ups return to the market. Do not look at the indices for guidance, they simply lag the quality of set ups that are already in the market.

B. Video Analysis & Watchlist


C.  Set Ups & Charts Watchlist

Usually this section of the post is dedicated to the MOST actionable set ups that are in the markets but during times of indecision, like right now, I like to just post a couple charts that are showing RELATIVE STRENGTH but not necessarily actionable.

3-29-14 ni 3-29-14 oge 3-29-14 pre 3-29-14 sci

3. Current Positions

RMBS – Been long since 3/7 and now only half of the position. Am looking to add other half back on further consolidation.

4. General Tips & Reminders

Be consistent.

Have an anchor, without an anchor you will drift away from what you need without any control.

Have a great rest of the weekend. Email or Tweet me with any questions or comments. 

The purpose of the Week Ahead post is to prepare you for the upcoming week in the markets. I do this not only to help others learn and develop trading skills but also to develop and cultivate my personal thoughts for the Week Ahead. Below you will find a written commentary portion followed by a Video Analysis the stock market and the set ups I am watching this upcoming week. This post is organized into sections, see bold titles and skip the items in which you are not interested in! Enjoy!

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The Week Ahead Outline, Strategy & Set Ups 3-29-14