Flow State #50
Market Landslide Continues - What's Next?
Welcome back everyone!
So far, inside "Momentum Gallery," we have witnessed some tremendously significant market moves that have not only met but also exceeded many of our target expectations. Moreover, several trades are currently approaching their respective targets. Below, you'll find a spreadsheet detailing the performance achieved thus far. It's important to note that this performance reflects realized gains and does not account for unrealized positions.
"Momentum Gallery" is where I share my swing trading recommendations, focusing on longer-term trading ideas spanning from weeks to months. This week, I have identified some larger targets, as I believe that market volatility is poised to continue its upward trajectory. Over the past two weeks, taking into account the stocks that have either reached their targets or been stopped out, we've accumulated an impressive return of 1.23% the last two weeks. The S&P500 is down over -5% the last two weeks showing that we are far ahead of the market!
Every two weeks, I will provide updates to showcase what free subscribers might be missing out on. Once again, this week, I have posted insights into 19 stocks that are currently at key levels, which I anticipate will align with our thesis. You can approach these opportunities in various ways, such as using common shares, weekly contracts through rolling strategies, or even LEAP contracts. Each method carries distinct returns, and your choice should align with your personal risk tolerance and management preferences. Regardless of your approach, it's crucial to ensure that the amount you risk per trade remains within the 1% to 5% range to maintain prudent risk management.
It's important to remember that this section represents longer-term positions, in contrast to the intraday levels I share on a daily basis. Additionally, I am actively working on another sheet to log all earnings calls, as a significant portion of our projections have been accurate. Just last week, we correctly predicted over half of the earnings outcomes! I encourage you to stay tuned for this update, as it will offer readers a different perspective on how I approach earnings calls. My analysis doesn't rely solely on chart patterns; I also consider the broader macroeconomic landscape to gauge how companies are likely to perform under current conditions. Earnings guidance isn't solely based on the quarter being reported; it also takes into account the company's future outlook. Therefore, even if a stock posts negative earnings but provides strong guidance for the months ahead, the market may interpret this as bullish, leading to an unchanged or even rallying stock price. This selective approach to earnings is why I carefully choose which stocks to participate in during earnings seasons, and I'll soon provide a comprehensive breakdown of the checklist I use for this purpose. Expect this educational post to be sent out to readers, hopefully before the year's end. Additionally, please note that I am already working on other educational posts, which will be released prior to this one.
We have a lot to cover this week, so please set aside some time to go through the entire newsletter. As always, I will provide insights on various topics, including Events, COT Reports, Sector Performance, Swing Trading Ideas, Earnings, Market Structure (ES, NQ, CL, GC, NG & DXY), and Intraday Levels. Your engagement and attention are greatly appreciated as we navigate these volatile markets together.