Arete Tuesday Newsletter

Short Trading week adds to uncertainty and volatility

We have had more then the usual volatility the past two days. This usual happens on a short week before any long break. The majority of larger players take off early for the week. This allows stock moves to be accentuated by small volume then usual. Essentially an Algo traders dream. Today we saw many stocks bid up only to be met by turning red. Many people selling into the weakness. None of us though right?

I joke but we all have emotions , fears and limiting beliefs. I do not want to get too esoteric but these mental roadblocks can cause more damage then any trading style or process. My point is: “Understand your process.” Then follow your process no matter your “feelings”. This has served me well over the years. All three new buy alerts were bid up this morning. within an hour or so they were all near or below the Buy points. Look at your process and how you handled this morning.

We have a short rest of the week. Expect wild swings to continue on anemic volume. Russell continues to be the leader. Making an all time high close today. $SPY is acting the worst of the big three. As long as we hold the 21 day we should be good. I am concerned about the recent lower low made. However we bounced off of it for now. $QQQ hammer turned into a dud. I expected follow through but with the light volume prediction and follow through are harder. We did close above a key level. Software and tech and pockets of biotech continue to explode. $NET $CRWD just monsters. $CRSP is actually setting up with an inside day today. Window dressing on steroids is what we are witnessing. As stated previously , 76% of all funds managers under performing the $SPY the year

$ARKK made another new high. We mentioned $CRSP and $EDIT building a bull flags on Sunday but those moves were insane. Cathie Wood nailed $PTON. Continue to look into all their different fund holdings.Her research set up is light years ahead of most.

Lets Look at the Indexes!

Lets look at our $TNA position

Lets look at our stock ideas !

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. I am truly humbled.

Note: $PLTR failed to close above our stop level. Therefore we are out and will revisit. $TAK is off the list. It never triggered. We will revisit. Too many other names are working.

Finally due to the holiday and being closed Friday. The Thursday letter will be delayed and a little different.

Lets finish strong!