Catching Volatility Explosions 10x Trade Formula Webinar Thursday

Aug 16, 2017: 12:40 PM CST

I’m so excited about this event, given the big explosion in volatility of the last week.

My colleague John Carter of Simpler Trading will be presenting his strategy called “The 10x Trade Formula” and it will specifically teach you how to spot and trade “volatility explosions.”

Here’s additional details and your chance to secure your spot in the free training this Thursday:

The 10x Trade Formula John Carter

During the presentation, you can expect easy-to-understand, plain-spoken tactics from a trader who shows his profits with his education.

I’m a colleague and affiliate of John’s and have happily been so for over six years now.

John Carter 10x Trade Formula Webinar Registration

Thanks to John and his team for making this presentation to us available without cost!

Register above or via this link to claim your spot and join us live this Thursday, Aug. 17.

I’ll be attending to learn what the master is up to now!  It’s always exciting.

Corey Continue Reading…

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Energy XLE Downtrends to New Low

Aug 16, 2017: 11:26 AM CST

So far in 2017 we’ve seen relentless selling pressure in the XLE (Energy ETF).

Here’s the current update as the fund makes yet another new swing low in August:

XLE Energy Downtrend

Like I highlighted this morning in SNAP, “weak stocks tend to get weaker.”

This logic also applies to ETFs and broader markets as well.

The Energy sector is the latest victim of “weak stocks get weaker” as price broke to a new swing low this morning in an ongoing daily downtrend.

Also, when looking to trade a bullish swing trade in a stock scan, take a moment to check the sector trend to increase your chances of a successful outcome.

Given two stocks – one in Energy and the other in an uptrending sector like Technology (XLK) – choose the one with the stronger (more bullish) sector trend.

While it’s not always as clear as this, take advantage of the times it is.

Unless you’re a bear – and making a lot of money here – stay out of the Energy sector until/unless we get a reversal. Continue Reading…

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Aggressive Bottom Fishing in SnapChat SNAP

Aug 16, 2017: 10:59 AM CST

New and aggressive traders often enjoy searching for that elusive trend reversal trade, also known as “Bottom Fishing” or “Catching a Falling Knife.”

We’re seeing this type of activity pick up in Snap Inc (SNAP) as price – in a downtrend – made yet another new low.

Was $12.00 the bottom traders have been fishing for?  Let’s plan:

Snapchat SNAP

At Afraid to Trade, one of our core trading beliefs is “strong stocks tend to get stronger; weak stocks tend to get weaker.”

SNAP is a great example of our “weak stocks getting weaker” principle which has us trading retracements IN the direction of the prevailing trend and NOT against it.

However, the temptation is strong to fight or fade trends in motion.

Look closely at the bullish/buy (green) volume (highlighted) in August in SNAP.

Combined with a positive momentum divergence and a handful of reversal candles, some traders are stepping up to the plate to catch those falling knives.  I hope they’re wearing strong gloves!

Carefully watch the price action here into the falling 20 day EMA – let this along with the prior swing high (just shy of $14) be your Bull/Bear Boundary.

Look to trade bullishly on a breakout above these levels (a safer trade) or else continue playing the downtrend in motion should price break beneath $13.00 again and head back toward the low near $12.00 per share.

Continue Reading…

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Our August 15 Bouncing Emini Fibonacci Grid Update

Aug 15, 2017: 8:51 AM CST

With volatility back in the market (for now), let’s update our Fibonacci Grid for the @ES because – believe it or not – it’s STILL working very well for short-term traders.

Here’s today’s @ES Fibonacci Grid in play:

Emini @ES Intraday Trend Reversal

Monday gave us our strong, expected rally up away from the 2,440 critical pivot (that I’ve correctly been highlighting to members) and we now see price gapping up – and falling this morning – at our 2,470 Fibonacci Target.

In simplest terms for a quick update, our pivot points to watch today include (today’s gap-up high) at 2,469 and the 2,458 Fibonacci Levels.

A breakout above 2,470 suggests we’ll retest the high while a break under 2,458 means we’ll play lower toward 2,445 again.

Come join us to learn these tactics (beyond this simple/quick update) and have an evening game plan you can use effectively for the next trading day. Continue Reading…

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NVIDIA NVDA Crashes Through Bearish Wedge to Daily Target

Aug 11, 2017: 12:23 PM CST

Bullishly trending NVIDIA (NVDA) just broke a bearish rising wedge on negative divergences, collapsing instantly to a daily chart support target.

What’s up next for the stock and is there a trade in it?  Let’s check:

NVIDIA NVDA Bearish Rising Wedge Breakout

NVIDIA repeatedly showed up on our “Strong Stocks Getting Stronger” scan, but the recent negative momentum and volume divergences into $170 gave us pause.

Our caution increased when a Bearish Rising Wedge pattern developed as highlighted.

Yesterday and now today with a big bearish down gap on high volume, NVIDIA shares collapsed to the rising 50 day EMA at the $155 per share level, a downside sell-swing target.

Keep the Daily Chart in mind as you step down to the Intraday Chart to highlight the Wedge: Continue Reading…

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