Hey traders,
In the ever-evolving world of trading, analyzing the broad market and staying informed is crucial.
Today I used my TrendPoint Software to get a gauge on the current status by checking important ETFs such as SPY, DIA, and QQQ.
When these are trending higher than usual, that is typically a strong indicator of a bullish sentiment overall.
However, even though the QQQ is bullish, it isn’t reaching a new high yet which could suggest potential volatility in the tech sector moving forward.
It’s important to monitor the relationship between stock performance and events in the news.
Good news can make a stock go up, but it can’t make a stock stay up.
Gaps in price often occur following news events, and these gaps will eventually be filled as the market corrects itself.
Chinese stocks are a prime example of this, check out BABA back in mid may. You can see a small pop, but the price drops back down to fill the gaps very quickly.
When stocks experience an abnormal price jump, it’s usually a signal to sell.
To protect my investments, I will raise stop-loss order to about 7% below the current market price.
If you want to put another sell order higher, whichever order gets filled first it will cancel the other order out (OCO = One Cancels Other).
By focusing on market trends, understanding the implications of news events, and employing effective trading strategies, investors can navigate the complexities of the market with greater confidence.
Trade well,
Jack Carter
P.S. Want access to my TrendPoint Software? It’s only for the true action takers, so begin your application today by clicking here for more details!
