After yesterdays educational video, today we take a deeper look at how we trade what we consider to be stair step patterns in the market. This helps us as traders determine whether or not the market is Pulling Back or Rolling over.
Todays Market Update Video
There are a number of reasons for seeing this type of pattern being generated by price action. Here are just a few:
Traders taking partial profit
The stock needs a breather (as it can be seen to be overbought)
Weak shorts being shaken out
Today's stock recap
REE - Rare Element Resources Ltd
NVLS - Novellus Systems Inc
SMH (ETF) - HOLDERS Semiconductor ETF
AMAT - Applied Materials Inc
ALTR - Altera Corp
Philip also discusses the recent upmove in the semiconductor sector and points out some key tradable areas for you to understand entry and exit strategies.
If you have any questions relating to this Market Update or wish for us to talk about a trading subject that you're interested in, please don't hesitate to contact us.