Arete Sunday Newsletter.

Stock volatility to continue on shortened week

Well the short week did not disappoint. Lots of stocks sold down 5-15% depending on their beta on the light volume week.Some rallied and others went lower. There is no rhyme or reason to this behavior. Simply the bigger players are on vacation and it makes certain positions more susceptible to wild swings by Algorithmic traders. Algorithmic traders care about one thing,getting you to act. This is why it is so important to have a process and know exactly where your risk is. We are setting up for another short week with the stock market closed Friday. Expect volume to be busier early in the week and taper off. Also consider you might see some of the same volatility as last week.

In regard to the indexes, all three look good. There is some concern about the advance decline line and its inability to rally from its current position. This can be a precursor to a sell off so seasoned professionals pay attention to it. Usually these signify a correction or shorter term sell off. They DO NOT signify a change of trend. The Russell continues to respect the upper trend line. Our $TNA trade continues to ride the wave. $SPY is muted and boring. It continues to get tighter and this could lead to some action. $QQQ continues to have my focus. We have a couple inside days that could lead to a powerful move.

Lets look at the Indexes!

Lets look at the $TNA ETF

Lets look at the Advance decline line.

Lets look at our stock positions!

BP= Buy Point BE= Breakeven Stop=Stop loss RSH = Right shoulder failure.

Please note: When I mention to trim its a suggestion. Going forward I will simply say we trimmed and the price.

Hope everyone had a Great Holiday Weekend !

As always all investment decisions need to be made by the individual.We all have different risk profiles and no two people trade or invest the same. Please make sure if you follow the Newsletter, you follow @aretetrading on Twitter. Also if you already follow me on Twitter consider turning on notifications. There are times my updates are timely in regard to the Newsletter. If you do not see a position and have questions please ask me.Thank you again for all the messages telling me how this Newsletter helped your performance or made you better. I remain humbled.

Lets finish strong!