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The Bible of Trend Following

Current Leading Stocks in the Stock Market $MNST $EMES $JMEI

My goal is to buy the strongest stock in the strongest sectors when the market is deemed healthy and on a buy.

Firstly the stock market is back in an uptrend currently ( however this can change very quickly)

MNST Monster Beverage Corp
EMES Emerge Energy Services LP Commo
JMEI Jumei International Holding Ltd
OTEX Open Text Corp
PANW Palo Alto Networks Inc
BITA Bitauto Holdings Limited
XRS Tal Education Group
CAR Avis Budget Group
SWKS Skyworks Solutions
GILD Gilead Sciences
FLT Fleetcor Technologies
VIPS Vipshop Holdings Limited
LUV Southwest Airlines Company
CMCM Cheetah Mobile Inc.
SKX Skechers U.S.A.
THRM Gentherm Inc
FB Facebook Inc
SIMO Silicon Motion Technology Corp
CMG Chipotle Mexican Grill
URI United Rentals
TTM Tata Motors Ltd
MPWR Monolithic Power Systems

If you want to learn how to identify the strongest stocks I can teach you. More importantly is to know when to be invested in the stock market.

I offer hourly one on one personal mentoring
Andrew@Trendfollowingmentor.com

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George Soros Gambles $2Billion + on Stock Market Crash

Soros made a fortune by shorting the British pound. Now Soros is betting that the stock market will crash. Soros posted his recent 13-F filing indicating that the Soros Fund Management has increased its “puts” on the Standard & Poor 500 exchange-traded fund by a massive amount $299 million to $2.2 billion over the last 2 quarters.

I would definitely suggest that you trade your own trading plan and simply follow Soros. Any trade is 50/50 regardless if you are George Soros.

I had been short and closed my position last week and reversed and went long QLD QQQ. However I look at the market on a daily basis and do not get stuck in my position. I let the market tell me the direction in which to trade. All of this can change very easily. I have a complete plan which keeps me on the correct side of the market. I can never avoid losses however attempt to keep them small ( unless gaps which I can not control).

qqq

If you would like to learn this methodology I offer one on one private mentoring by the hour. Just email me
Andrew@TrendFollowingmentor.com

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Follow Through Day For the Stock Market- So Much for a Stock Market Crash

All the shorts got squeezed including myself. I still have not received a signal to exit my SXE however my long VIX trade has not worked. One must be flexible and be willing to change directions without any opinions rather facts.

The Nasdaq on Wednesday, rose 1% in heavier volume. In order to be long you want to see this. The Nasdaq gained further ground above it’s 50dma and is now within one percent of it’s recent highs while the SPY got closer to this important moving average. Volume was higher across the board, showing that institutional players may be getting more interested in the market. To some degree this was a healthy correction for the market, however not deep what so ever. Bullishness diminished to some degree. The fact remains that this is one of longer bull markets and at some point they will end, albeit not quite yet. It is probably not a good idea to get to heavily invested to quickly and be prudent.

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The Importance of the 200 Day When Trend Following

Many times I have mentioned the importance of the 200 day line. When the market is above this line, the stock market is considered healthy. Contrarily when stocks are below the 200 day line…it is negative…

Need I say more? This chart shows the extreme weakness of the vast majority of stocks. Can it change – Yes..However at the moment it is not looking positive

stockd

If you want to improve your trading I can assist you with one on one private mentoring. Just email me
Andrew@Trendfollowingmentor.com

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Stock Market Rally or Suckers Rally?

The Stock market was positive yesterday.The COMPQ led the way with a gain of .70% while the SPY was higher by .28%. The small caps also did well with the Russell up by .93%. The question I have had in recent discussion is…
Is this a Suckers Stock Market rally or a stock market rebound?

My answer is that my crystal ball is not plugged in and have to take it day by day. Currently I am short the SXE and long the VIX. My Vix trade is not working and may not work. However the SXE has shown some nice profit. The concerning issue if we are truly to have a stock market rebound is that…Volume again was an issue. It was even lower than Friday, continuing the pattern of high volume declines and low volume rebounds. We now have two rally days in a row off the lows on lower volume. In theory you want to see rebounds with strong volume. That is why this rally is suspect.

Time will tell…Do not have opinions, rather have a trading plan based on rules without emotions. If you need help with becoming a better trader I offer one on one personal hourly mentoring. Just email me
Andrew@Trendfollowingmentor.com

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Trend Following Morning Mantra

trendfollowingpost

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The Continued Pattern of Strong Volume on Down days and Low Volume on Rally Days

The market clearly rallied strongly on Friday…however and it is a big however…This continues the pattern of strong volume on down days and low volume on rally days. Big institutional players are not supporting the market. On the positive: The New York averages were strong with the SPY rising 1.15% while the Nasdaq was up .83%. I would feel a lot better if there was substantial volume but there wasn’t. The key is watch the key moving averages such as the 50 day moving average as well as the 200 day moving average. Be flexible in your expectations. Do not have a preset disposition. Let the market tell you where it wants to go.

We have seen many times in the last year or two when the markets looked like they were going to tumble and then turned around and rallied to new highs. Trade with a complete trading plan. If you need help with yours. I can assist you. I offer hourly one on one mentoring….you can email me at Andrew@trendfollowingmentor.com

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Market Downtrend in Stocks #SPY #DIA #QQQ

As always you need to have a trading plan. You do not want to say ” It is just a correction” or ” The Market can comeback”. We just never know the future. A correction can ramp up to a full bear market which can destroy both financially and emotionally. As stated in my earlier posts I have exited all long positions in early July. I am long the VIXY which is the Vix as well as short the European Stock indexes. However I am locked in with any opinion and believe the market could heal itself or get a boast of Central Bank Liquidity.

Yesterday was a particularly bad for stocks. The S&P 500 closed under it key 100-day moving average line at 1914 today, hitting a new multi-week low in the process. The NASDAQ’s Volatility Index (VXN) made its highest close in weeks yesterday. Breadth was poor on the Nasdaq as declining stocks outnumbered advancers by nearly 2-to-1. On the NYSE, decliners only had a slight edge over advancers. All the major averages made new lows for the pull back and closed near their lows of the day. The correction seems to be getting deeper and as of this writing the futures were taking another hit, possibly on rumors that the U. S. would be starting air strikes in Iraq.

Contrary to the pundits it is possible to call the market’s major tops and bottoms. I can teach you how to improve your trading. I offer one on one private mentoring. Just email me Andrew@Trendfollowingmentor.com

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Investing Psychology

Learn how fear can keep you from making money in the stock market from Scott O’Neil. Great video for trading psychology.

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Most Important Issues About Trading & Trend Following

Too many focus on market analysis. Instead of market analysis, look at yourself and face your fears!

I have this pasted next to my computer. Before trading I read this. It keeps me focused- I suggest you print and read before you trade. More so you do not need to trade every day….

1. Put on Trades without any hesitation or conflict
2. Embrace the risk & accept the risk
3. No emotional discomfort
4. No Hesitation-No Jumping the gun-No Hope- Cut Losses
5. Create Consistency
6. Endless stream of opportunities
7. Be free of fear, regret, despair or disappointment
8. Fear is the cause of all errors
9. There is nothing painful in the market

If you need help in your trading- I offer one on one private mentoring
Andrew@Trendfollowingmentor.com

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