Hey Market Pilots,Sometimes it is ok to do nothing in the market. In fact, Jesse Livermore said it was the waiting which made him the money; Waiting for a setup to form and waiting for a position to appreciate. And markets aren’t always clear. There can be chop during consolidation which makes entering a position treacherous or just a waste of time.  It can be challenging as a trader to be inactive, but it is a skill that must be learned. Overtrading is a real thing and we waste our … Read more

Hey Market Pilots, Our abilities as humans to recognize patterns, even if those patterns aren’t identical, is a profound ability. I use the example of a box to help elaborate on how we need to view market patterns. Imagine 100 packages arrive at your house. They all came in a box, right? But none of them were the same. Some of them may have had stickers, tape, rope, or a bashed corner. Some were long, some were wide, others big, or small. No matter the kind of box arrived, we … Read more

Hey Market Pilots, Making money trading stocks isn’t about knowing every possible setup nor taking every possible setup. It’s about finding the most reliable so that your wins are consistent, lower risk, or pay off in a big way. In my years of studying, I discovered a setup that I love for its reliability and energetic nature. I call it the trampoline set up for just that reason. Having a few setups that work well for you has the added benefit of skipping over all the other junk out there … Read more

Hey Market Pilots, Last week I wrote about sector rotation; what it is, how to look for it, and where is it going now? The real key to taking advantage of sector rotation is being able to identify it early and then find the best names in that sector. With word about a possible Covid vaccine coming out and news about the economy opening back up, as seen by Las Vegas opening their doors, the new hot stocks were in travel, gaming, and retail. It took only a few days … Read more

Hey Market Pilots, Sector rotation. What exactly is it? The words seem simple enough to deduce what it means, but let’s take a deeper dive since we are right in the middle of one. As you may already know, the market is made up of different sectors. There are the semis, healthcare, REITs, materials, home builder, tech, small caps, big caps, retail just to name a few. There are a bunch of different sectors and some of the stocks find themselves in more than one sector.  As money moves around … Read more

Hey Market Pilots, As the market climbs higher and higher, we continue to wonder just how long this can be sustained. Many of us have been proven wrong in the recent past when we tried to short the market but it just kept going up despite our indicators. Since then, I have directed our subscribers to be careful on the short side; To really only expect a short trade to be a reversion to the mean from an overbought rally. While this has been the case for quite some time, … Read more

Often times trying to short a top or pinpoint the exact moment that price is going to roll over and start a new downtrend is extremely difficult. This is because tops are messy and bounce a lot as larger traders try to unload their shares and others are trying to continue the long run. Comparatively, bottoms tend to be specific points in time, quicker, or more decisive.  This can be seen rather easily in the months of trading from the COVID-19 meltdown. The low at the end of March was … Read more

Hey Market Pilots, As a trader, I have grown accustomed to having access to my money and the ability to liquidate my positions at a moment’s notice. It’s a major factor in why I like trading as an investment vehicle. I don’t have to wait for someone to be interested in my property, worry if my investment goes out of style, or is at risk of water damage. But for two days a week I have to pause that accessibility while the world still turns.  In the grand scheme of … Read more

Hey Market Pilots, The last week’s worth of market movement has been intense in both directions and driven based on two different statements from the same person: the Fed chairman, Jerome Powell. It began on May 12th when Powell said in an interview that the recovery of the economy was going to be longer and more difficult than they originally expected. I am sure most of us were thinking “duh, welcome to the real world.” The markets didn’t like this and sold off hard for nearly two full days. Interestingly, … Read more

Hey Market Pilots, While we know that 80% of stocks follow the market, I have found that the path of individual stocks can act as a sort of road map for the future of the market itself. For example: The SPY is between the 50 and 200 Simple Moving Averages on both the Daily and Hourly chart. This is a very confusing location to be as we don’t know which moving average is going to be the stronger one; a very important piece of knowledge since it’s the difference between … Read more