Next Monday's stock idea

Inside Day Short Term Trading Tactics Learn Important Day Trading Techniques The Right Way One of my favorite day trading techniques is to utilize swing trading or short-term trading strategies and reduce the time frame to intra-day once I'm comfortable trading the strategy using longer time frame. Once I reduce the time frame I then determine if the strategy has promising qualities with the limited intra-day time frame. The 2X Inside Day Strategy Revisited Last week I presented a great swing trading strategy that takes advantage of low volatility periods where markets are consolidating and preparing for the next big move. I purposely demonstrated this strategy to you using daily time frame because I wanted you to become familiar with the rules of the strategy and give you a bit of time to get familiar with how the strategy works. As you begin trading more and more you will notice that different strategies have different characteristics and the better you understand these characteristics the better you will become in choosing the best set ups for each strategy. The Set Up Since we are day trading the 2X Inside Day Strategy we have to make some minor adjustments. If you recall I looked for the market to make a 50-day price high or low in the original strategy. I find that with daily charts the 2X strategy works well using reversals but with day trading it tends to work best with short-term reversals. So what I do is find a set up that occurs after the market made a 10 day low against the current trend. This way I catch the market after a short pause and immediately before the market resumes the strong trend. You can see in this particular example how the stock is trending strongly before it makes a 10 day low and the pattern sets up immediately thereafter. You want to see a wide bar and two inside days following that bar. 10 Day Low Against The Major Trend Works Great Once you isolate the set up you can place your entry order for next day's opening bell. The best way to trade the 2X Inside Day is to place a buy stop $0.05 above the high price that was achieved on the third day and once you're filled you need to place a sell stop about $0.15 cents below the third day low price. These examples are to the long side but the strategy works just as well to the downside. Just make sure you don't confuse sell stops with buy stops, this will cause you losses on top of missing out on the trade. Place Your Protective Stop Only After You Get Your Entry Fill The exit point would be a MOC (market on close) order that you would place after your fill. Many traders try to predict intra-day market peaks and I'm one of them. However, after testing dozens of different exit strategies I found this method to work best with liquidating near the closing. The momentum is coming back into the market after two very quiet days, so typically the momentum follows through till the opening bell, especially if there is extended buying coming into the market. You can see the entire pattern from beginning to end on a daily chart in this example. The Stock Closes Near The High Of The Day Once It Breaks Out Before I move on to another example I want you to see the entire progression using 15 minute charts. The 15 minute time frame is what I use for stocks and ETF day trading techniques. When I trade futures or currencies I switch to 5 minute charts. The 15 minute time frame reduces the amount of random noise that is present in intra-day stock chart analysis and it helps me see more focused price action. The 15 Minute Time Frame Is Good For Stocks And ETF's Second Example Using The 2X Inside Day Strategy I want you to get a good feel for this method so here is another great example of the good set up. Notice that my risk level is lower than $1.00 which is the ultimate goal when day trading or short term trading any stock. You want to find low-risk setups such as this one so that your risk to reward is exceptionally high. This is very important and is absolutely necessary especially when you are day trading. These Are The Type Of Set Ups You Want To See You can see how the stock rallied and closed near the high of the day. The profit target should always be MOC for this type of strategy, especially when you are trading stocks. MOC doesn't mean you will be executed at the closing bell, it simply means your exit will be filled at the closing price range which is usually within a few cents of the closing price. The 2X Pattern Looks Like Mini Triangle Or A Sideways Cone On The Bar Chart You can see one last example on this 15 minute bar chart. I first isolate the pattern on a daily chart and once I'm ready to trade I switch to a 15 minute bar chart and place both charts next to each other. This way I can see how the pattern progresses on both charts simultaneously. For day trading purposes I don't bother with the weekly chart but if the trade involves holding positions overnight I will start the analysis with a weekly chart and work down from there. Stock Takes Off After two Day Pause Things To Keep In Mind The 2X Inside Day Strategy works great with stocks, futures and forex markets using intra-day time frame. Don't forget to modify your settings because the set up uses 10 day's against the trend prior to the cone shape triangle develops while the regular swing trading pattern relies on 50 day high and low prices. How to beat the market in booms AND busts… The S&P 500 is roaring. Your portfolio is up. The Brexit shocks global markets. Your portfolio is up. Stocks are flat and mostly stagnant. Your portfolio? Still up. Register For My Webinar To Find Out How From the WealthPress Mailbag Jeff K. writes… "Thanks again for your time Roger, I am learning lot's more with your program than with all the others I have purchased in the past several years. You have a natural gift for teaching and I'm very happy to be part of the group. Keep up the great work!" Market Action U.S. markets gave up its early gains as Wall Street awaited the Fed's rate announcement at the conclusion of its two-day FOMC meeting. As expected, the Fed left interest rates unchanged with the market seeing some strength on the news. However, the selling pressure returned into the final hour of action with the major indexes finishing mixed for the session. The Russell 2000 gained 0.3% after trading to a midday high of 1,565 while closing back above its 50-day moving average. The Nasdaq slipped 0.2% following a backtest to 7,094 while holding crucial support at the 7,000 level. The S&P 500 fell 0.7% after testing a low of 2,631 while the Dow also declined 0.7% after trading down to 23,886. Both indexes remained trapped between their 50-day and 200-day moving averages. Energy was the only sector that closed higher after advancing 0.4%. Consumer Staples sagged 2% while Health Care sank 1.4% to pace the laggards. Global Economy European markets were higher across the board following better-than-expected economic news. Germany's DAX 30 surged 1.5% while the Stoxx 600 Europe was up 0.6%. The Belgium20 and UK's FTSE 100 added 0.3% while France's CAC 40 climbed 0.2%. The Eurozone Apr Markit Manufacturing PMI was revised higher to 56.2 from 56. Eurozone Q1 GDP rose 0.4% quarter-over-quarter and 2.5% year-over-year, matching forecasts. The Eurozone March unemployment rate was flat at 8.5%, matching expectations. The UK April Markit/CIPS Construction PMI rose 5.5 to 52.5, stronger than forecasts for a rise of 3.5. Asian markets closed mostly lower with Australia's S&P/ASX 200 bucking the trend after rising 0.6%. South Korea's Kospi gave back 0.4% and Hong Kong's Hang Seng fell 0.3%. Japan's Nikkei slipped 0.2% and China's Shanghai dipped a tenth-point. The China April Caixin Manufacturing PMI unexpectedly rose 0.1 to 51.1, topping forecasts for a dip of 0.1 to 50.9. Japan April Consumer Confidence fell 0.7 to 43.6, weaker than expectations for a gain of 0.2 to 44.5. U.S. Economy MBA Mortgage Applications sank 2.5%, accompanied by a 1.6% drop in the purchase index and a 3.5% decline in the refinancing index for the week ending April 27th. The 30-year mortgage rate jumped 7 basis points to 4.80% and represents the highest level since September 2013. ADP Employment Report increased 204,000 in April, versus expectations for a print of 190,000 private payroll additions. The service sector added 160,000 workers while the goods producing sector added 44,000. For the latter, manufacturing jobs were up 10,000 with construction jobs adding 27,000. In services, trade/transport jobs were up 14,000. Health/education jobs increased 39,000 while Leisure/hospitality rose 36,000. Small firms added 62,000, medium firms were up 88,000, and large companies added 54,000. This was another very solid employment report. Every Two Weeks THIS Identifies The Top Asset To Own If you want up to 50.91% returns this year… Enough to potentially multiply your account by 7.8x in 5 years… 61.2x in 10 years… and a stunning 3,752x in 20 years… Discover How It Works On My Free Webinar Training Market Sentiment The FOMC announcement was close to expectations as the Fed noted the rise in inflation, but didn't stress it, while reiterating the moderate pace of economic growth. There were no surprises in the statement indicating any policymaker concerns over inflation and that the Fed might be getting behind the curve. For now it's steady as it goes as traders turn their focus towards Friday's jobs report, the remainder of earnings this week, and possible news from the China trade summit. The iShares 20+ Year Treasury Bond ETF (TLT) held positive territory throughout much of the session while reaching a peak of $118.86. Lower resistance at $118.75-$119 and the 50-day moving average easily held with continued closes above the latter being a slightly bullish development. Near-term support remains at $118-$117.75 following backtest to $118.26 ahead of the closing bell. Volatility Index The S&P 500 Volatility Index ($VIX) stayed elevated throughout the session while testing a high of 19.66. Fresh resistance at 19.50-20 and the 50-day moving average held with a close above the latter being a continued bearish development for the market. Rising support is at 17.50-17. Market Analysis The Spiders Dow Jones Industrial Average ETF (DIA) extended its losing streak to four-straight sessions after testing a low of $238.56 intraday. Support at $238-$237.50 held with a close below the latter likely leading to a further backtest to $236-$235.50. Near-term resistance is at $239.50-$240. RSI is in a downtrend with support at 40 now in play. There is risk to 30 and February/ March lows on continued weakness. Resistance is at 45-50. Sector The Consumer Discretionary Select Spiders (XLY) slipped for the 2nd-time in 3 sessions following the backtest to $103.02. Upper support at $103.25-$103 and the 50-day moving average was breached with a close below $102.50 (and the 100-day moving average) being a bearish development. Near-term resistance is at $103.50-$104. RSI is trying to hold support at 50 with risk to 45-40 on a move below this level. Resistance is at 55-60 with the latter representing the multi-month high. All The Best, Roger Scott WealthPress Hidden Plunge Protection Asset I call it my hidden "Plunge Protection" asset. When stocks drop, it rockets up. If you owned this in '08… you'd have been up HUGE while others got crushed! Watch My Upcoming Webinar Training For Details IMPORTANT! BY READING OUR CONTENT YOU EXPLICITLY AGREE TO THE FOLLOWING. DISCLOSURE. Wealth Press LLC., its managers, its employees, and assigns (collectively "The Company") do not make any guarantee or warranty about what is advertised above. The Company is not affiliated with, nor does it receive compensation from, any specific security. While the Company will not engage in front-running or trading against its own recommendations, The Company and its managers and employees reserve the right to hold possession in certain securities featured in its communications. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. ALWAYS DO YOUR OWN RESEARCH and consult with a licensed investment professional before making an investment. This communication should not be used as a basis for making any investment.Indemnification/Release of Liability. By reading this communication, you agree to the terms of this disclaimer, including, but not limited to: releasing The Company, its affiliates, assigns and successors from any and all liability, damages, and injury from the information contained in this communication. You further warrant that you are solely responsible for any financial outcome that may come from your investment decisions. Forward-Looking Statement. As defined in the United States Securities Act of 1933 Section 27(a), as amended in the Securities Exchange Act of 1934 Section 21(e), statements in this communication which are not purely historical are forward-looking statements and include statements regarding beliefs, plans, intent, predictions or other statements of future tense.Past Performance is Not Indicative of Future Results. Investing is inherently risky. While a potential for rewards exists, by investing, you are putting yourself at risk. You must be aware of the risks and be willing to accept them in order to invest in any type of security. Don't trade with money you can't afford to lose. This is neither a solicitation nor an offer to Buy/Sell securities. No representation is being made that any account will or is likely to achieve profits or losses similar to those discussed on this web site. The past performance of any trading system or methodology is not necessarily indicative of future results CFTC RULE 4.41 - HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE CERTAIN LIMITATIONS. UNLIKE AN ACTUAL PERFORMANCE RECORD, SIMULATED RESULTS DO NOT REPRESENT ACTUAL TRADING. ALSO, SINCE THE TRADES HAVE NOT BEEN EXECUTED, THE RESULTS MAY HAVE UNDER-OR-OVER COMPENSATED FOR THE IMPACT, IF ANY, OF CERTAIN MARKET FACTORS, SUCH AS LACK OF LIQUIDITY. SIMULATED TRADING PROGRAMS IN GENERAL ARE ALSO SUBJECT TO THE FACT THAT THEY ARE DESIGNED WITH THE BENEFIT OF HINDSIGHT. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFIT OR LOSSES SIMILAR TO THOSE SHOWN. All trades, patterns, charts, systems, etc., discussed in this message and the product materials are for illustrative purposes only and not to be construed as specific advisory recommendations. 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