Today we are going to quickly run through the market update and how waiting for better buying opportunities is what it's all about!
Rules and how you trade your rules is something that we have been talking about a lot in our updates and everyone has to respect other people trading styles. At Stock Market Strategy we do not take low odds trades in a hope that the home run trade will eventually pay off all the losing trades we made. We like to analyse the charts and make high odds trades based on market conditions allowing us to maximise our positions and profit in any given trade.
This is why Philip talks about position sizing at the lower part of the trading channel in the SP-500. This area, to us, has more benefits when analysed correctly. So if you have been watching our stock market update videos you will have seen that the risk to reward increases and decreases depending on the direction of the trading channel.
Option Expiration (OEX) was on Friday which is a day we set in our diaries to be aware of and position size according to our plan.
SLV - Silver is at an all time high and the relative strength is strong.
Silver stocks such as SLW (Silver Wheaton Corp) have not taken out the same high as silver showing that the stocks are lagging the strength of silver currently but this is definitely something to keep an eye on.
PAAS (Pan American Silver Corp) is also like SLW in so much as it hasn’t taken out its previous high but we are keeping a close eye on these stocks and the sector for some potential trades.