Spec-K Trading: Planning, Methods, and Weapons

NOTE: My regular updates on market perspectives I now post ON TWITTER so that you can see them without any effort in real-time.  On twitter I am “nanoparticle7”. 

 

Welcome to stock trading, professional style.  This site exists to tremendously accelerate your development and improve your results as a stock trader.  Here you will find:

  • Educational materials in the form of examples, alerts, market analyses, videos, and my new publication “Pragmatic Trading: Professional Planning, Modern Methods” (see below).
  • Market analysis and real-time updates throughout the trading day.
  • Example trades drawn from many markets and time frames.
  • Excerpts from the book “Pragmatic Trading”.
  • Real-time alerts throughout the day on set up stocks and the trigger levels of interest.
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Broad Markets Update

Sunday May 31 2020

BONDS

TLT looks like a giant, very large bull flag structure.  Huge upside potential if ABC with A=C.  Aggressive trade: take sold call spread stop at 127%/low.  Conservative: wait for break of upper channel line of flag.  Already in aggressive position.  Build position on bullish action up/through.

GLD / GDX

Bullish flag type structure.  More consolidating slowly rising in range?  May have initiated fresh bull move of several weeks (3 days of upward motion).  However, GDX looks like the move up is a B wave of a larger ABC.  The move up off Wednesday key reversal candle has stalled under the 21 ema.  I think caution is the proper stance here in GLD/GDX; too much risk of backing/filling, unless there is significant strength in the immediate short term daily action.

Commodities / GSG

Commodities have form a very constructive pivot low over the last 3 months.The most recent price action has already been over the most aggressive neckline, and another is around 10.2.  Buying on some retracement over the next week is a reasonable strategy here, but best to wait.  Price is up on the upper volatility band now on the hourly; let them come down to the 21ema at least for a buy set up.

US$ / UUP

A high quality buy set up is forming in UUP, with a sharp sell off out of a multi-month consolidation range.  The total length of the last selling (top of range to current low) is approaching the sizes of the larger symmetric such moves; its time to be watch carefully for a pivot low and buy triggers.  The monthly trend in US$ is strongly up; the 3 month of high volatility price decline is increasingly like to break and final pivot low to form; we want to catch that even if it takes a couple of tries now.  I’ve already some uup calls.  Looking to add more on clear buy triggers.

Bitcoin / BTC

Still consolidating and down trending UNDER the descending giant triangle trend line.  Current several week correction off May highs looks incomplete to down side.  The pivot low when it comes sets up a potential daily chart polarity shift to up on a move above the May highs.  That is a place to speculate on GBTC.  So we want to stalk this here very carefully for the next week, or however long this current correction (AB so far?) takes.

Russell 2000 / RUT

Out of sight strong.  More upside possible.  Violated 61.8%, tagged/stalled at Fibonacci fitted target.  Needs a final v wave up to complete Y leg of WXY B wave?  Looks rather like that.  Targets at 1482 and then 1550 areas.  No serious sign of this thing breaking its stride EXCEPT the fact of the levels.  “Believe it”.  And don’t step in front of it.  When it stumbles, there will be some clear indicators with plenty of time to take advantage of the meat of the move.  No short FOMO!!

Silver / SLV

Approaching completion of a 5 wave move up off the March lows, and perhaps just under the 100% retrace level for a pivot high.  One to watch for a possible short late in the week.

S:500/ SPX

Like RUT, tagged and pivoted at a Fibonacci fitted target last week.  Touched the lowest edge of a wide high potential pivot band (3070 to 3157).  Like RUT, perhaps one final leg up (again!) to finished the C of the ABC B wave up.

Nasdaq 100 / NDX

Key reversal bar on Wednesday, approaching 94.4% retrace level for 3rd time.  A runaway freight train to the long side. But also approaching the completion point of the B (?) wave move (expanding flat possibility if it exceed 100%?).

Emerging Markets / EEM

Quite weak relative to primary US averages, still under the 50% retrace level of the A wave down, far away from the 200 day ma.  Potential tag/pivot at the 50% at 38.29 as all the major averages complete their EW structure up in the next week or so.

Euro vs. US$ / FXE

At an extreme high and set up for shorting via sold call spread on a break of this move.

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  • The complete trading plan for rigorous and disciplined trade execution.
  • Comprehensive tutorials on essential technical market analysis tools.
  •  Multiple trade setup and trigger models.
  • Trade management: stop and profit exit techniques.
  • Two fully specified functional trading plans.

The market analysis tools section is comprehensive:

  • Candlestick charts
  • Price swing lines
  • Polarity analysis
  • Price trend lines
  • Support and resistance levels
  • Price reversal patterns
  • Fibonacci levels
  • Quantitative trend
  • Candlesticks patterns
  • Range consolidation and expansion
  • Volatility analysis and the volatility squeeze
  • Symmetry analysis
  • Fibonacci fitting
  • Elliott wave analysis
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  • Cross market analysis

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Review a complete Table of Contents.

Pragmatic Trading: Professional Planning, Modern Methods
Pragmatic Trading: Professional Planning, Modern Methods
A Complete Course in Professional Stock Trading
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