Arete Sunday Newsletter
New boss same as the old boss. How to profit.
New boss same as the old boss and how are we going to profit. To start with the entrenched and entitled have had an advantage since the dawn of time. Why would we expect Wall Street 2021 to be any different? The moves done this week were outlandish and blatant favoritism. My advice has always been to have many trading platforms if possible. Here is what we know. We know that the powers to be,large institutions, are deleveraging at a rate not seen in over 30 years. Deleveraging refers to reduction of risk and margin. This is why you are seeing so many failed breakouts. Every rally is met by some fund selling into strength. This looks to continue for some time. This is why its so important to set stop losses. We have been stopped out of several winners locking in profits and small losses on others. This allows us to regroup and wait for the next setups. $CELH our stop was $58.5. Its now $53 and the list goes on. There is one new Buy alert. I would exercise caution going into this week and shorter term thinking.
Anything can happen. If I were to tell you two weeks ago that a Reddit sub group was going to bankrupt a billionaire and wreak havoc on the stock market, you would have thought I was crazy. We discussed $GME on twitter and what could possibly happen. My furthest thoughts were another $TLRY from 2017 but what happened is so much more.
In regard to the Indexes, We are seeing the the $SPY come in the worst which means that might be the first to bounce. We need to hold above the 50 day moving average. If we see a lower low off the open then the previous bar, consider staying out of the way until we find our feet. The $QQQ held $311.98 but closed below the 21 day for the first time since Oct 2020. We are vulnerable to the 50 day moving average. Note the $SOX and $IBB both are holding in there. However if we correct , we could see 10% moves in the sectors which would lead to several big tech names coming in even more. The $IWM has been overextended for some time. Very little support till $194.65
How do we profit? By following our process,executing with discipline and waiting for the right time.
Lets look at our Indexes!
Lets look at our stock ideas!
Please note how there are significantly less set ups on the stock list right now.
"There is a time to buy, a time to sell and a time to go fishing" ~Livermore
BUY ALERT !
Subscribe to You Tube! 👈 Subscribe and turn on notifications.There are several ideas in the one posted today. We looked at Monthly charts some of the most active names. $GME $AMC etc.
Here is a link to a 5 min basic video on Moving averages and one quick tip to entries and exits.
As always all investment decisions need to be made by the individual.We all have different risk profiles.No two people trade the same.
Please make sure you Subscribe to Twitter! 👈and turn on notifications.There are times my updates are timely in regard to the Newsletter.
*For example there were key entry and exit points on several stocks during a volatile week.You can see the time stamps.
If you do not see a position and have questions please message me.
Thank you again for all the messages telling me how this Newsletter improved your performance and made you a better trader.
Lets Start Strong !
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