Tuesday Arete Newsletter
These times are not for the unprepared
These times are not for the unprepared. Know your stop levels. Know your buy points. Know where you are going to lock in a profit. If you do not know these levels on every trade, You are going to have a tough time in choppy markets. Sunday I stated “buy the dips and sell the rips. We have too many failed breakouts. It’s too many to list. Look for entries on support lines and pullbacks. While we continue to bottom, It’s best to jab and weave. Do not trade in this market without having a full plan and that means a tight stop that is honored. This can always get worse and roll. We never had a capitulation move last correction so it’s still a possibility and the VIX is creeping up. The goal is to stay in the arena long enough and outlast everyone. It’s not to go out in a blaze of glory. I am trying to hammer this one point home “PROTECT YOUR CAPITAL” This gives you more peace of mind, clearer thinking, and more ammunition for when the rally continues.
The IWM was down 3.63% on the day. We are below the 50 day moving average on the close for the first time in months. We closed at the low but right against a lower trend line supporting the upper trend. A break of that line tomorrow will lead to more selling. Note the line on the chart.
The SPY was down .79% today and we closed right on the 21-day moving average and $387.44 is support. If this level breaks the next level is $385 the 50-day moving average. So there are several layer of support here. Much more than the IWM. As far as sectors the $XLE is down 13.4% and the $XLF is down 6.25% since we stated they were topping. the $XLK(tech) is up @2.6% at the same time.
The QQQ is clearly the strongest. We are currently trapped between the 50-day moving average and 21 day. A break of the 21 day leads to a test of $309 level. We need to clear $324 that would lead to a reversal and establish the trend. Right now is no man’s land we just are just basing and choppy.
I did a video this weekend. There is a link at the bottom on NFT stocks. Key levels to watch. Some of the names have been on fire 🔥
Let’s get to the Indexes!
Lets get to our stocks
Take a moment to notice the small losses versus when we lock in a profit. You don’t need to be right all the time. You need to have a process.
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As always all investment decisions need to be made by the individual. We all have different risk profiles.No two people trade the same. Understand the buy points, stop losses, trims are suggestions. For example on stops. I want to see it close there at the end of the day.
You need to develop your own process. I am willing to help and offer feedback.
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Thank you again for all the messages telling me how this Newsletter improved your performance and made you a better trader!
Wishing everyone Massive success!
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