📈 This is Our New Trading Environment

This is how you should be trading.

Trading Environment

We saw some selling across the board today on pretty significant volume. The markets got extended and we pulled back today.

The good news is that the indexes are still holding their moving averages.

Is this the end of the world? No.

Should you be cautious? Yes.

Tough Penny Environment

In my opinion now is not the time to be initiating new swing trades and holding for an extended period of time because of the risk you run.

This week I have been focused on picking off stocks intra-day and hitting singles to pull money out of the market without taking overnight risk.

Below is an indicator that I use that just flipped to yellow (for caution) which is typically when I start lightening up my swing trades and opting for day trading.

Again this does not mean that the market is going to crash or that it is not going to go up today or tomorrow. This is simply how I am viewing the market at the moment and how I am trading.

I lay out my viewpoint in this clip below: