A Basic Trend Trading System | Brent Moors | 9-19-19 | Technically Speaking: Trading the Trend
It. Is good to be here today my name is Brent Moore's Oh I'm not, James boy boy James Boyd is out of, office. Today he's on a workshop, I'm subbing, for him but, it is good to be here it is technically, a times when we talk about swing, trading we talk about support. And resistance and. And, which. Isn't. Unloving, to trend, trading but. You, know a lot of this like shorter. Term stuff doesn't, apply as much to trend trading so this is what we're gonna be talking about today before. We get into that though let, me just point. Out something I've got a Twitter account my. Handle is @b mores underscore, TD a love. It if you follow me, also. Remember that. Options. Are not suitable for all investors is, a special, risks inherent to options trading may expose investors, to, potentially. Rapid. And. Substantial. Losses spread. Straddles and other multi leg options strategies can entail substantial, transaction, costs including multiple commissions which may impact any potential return in. Order to demonstrate the functionality of the platform, I need. To use actual symbols, here, however, TD Ameritrade does not make any recommendations, or determine the suitability of, any security, or strategy, for individual traders any investment, decision you make in your self-directed account is solely a responsibility. We'll be looking at paper money today paper, money is for, demonstration. Purposes, only past. Performance, of each security strategy, does not guarantee, future results or, success those, your option Greeks be aware of those if you're going to be. Trading. Options. They're welcome. To, everyone. Everyone. Out there ok so what are we doing today this, is what we're doing today we. Are doing. We're. Going to go through. Some. Indexes, take a look at some indexes see how they're doing we'll look at some sectors, I know James, typically, does that and. Then, we're going to talk about trend, trading trend trading opportunities. How to find trend trading opportunities, I'll show, you one way to do it of course my way is not the only way but hopefully it. Helps. You out there and then we'll look at some trade management. Therefore, by, the time, we're, done. You. Should be able to find your own potential, trend. Trade. Opportunities. Now. Let. Me just point something out, to you we. Have a lot of Education, here and just. Remember a lot of classes, feel, free to to. Check out our education. Offering under the education, tab you. Can go to webcasts, or we also have some courses there explore. Around that, just a little bit let's head over to, our thinkorswim, platform though. And, take. A look at that okay. I'm, gonna start off oops, so, I'm gonna start off with the S&P, 500, SPX. By. The way. If. You. If. You're, wondering what this Green Line is on the chart that is a. 50-day. Moving average. 50-day. Moving average, and, moving.
Averages Are going to be a big part of our discussion, today because. I think moving averages, are a great, tool, something. To assist, you as you're. Trying to learn how, to learn. Trend trades okay because a key. To trend trades is the. Trend now, how do we find the trend well. The typical, definition. Of, a trend well. Typical. Definition, of an uptrend. Or an upward trend is a. Series, of higher highs and higher lows, okay. Or. The. Typical definition of, a downtrend, is a series of lower highs and lower lows the, problem, is, on. Very clear cases that works really well, sometimes. It can be a little bit difficult do. You guys know what I'm saying have you noticed that have you looked at and you've seen a high and then a higher high and then maybe a lower high and then another higher high and and so, you're kind of left, yourself wondering. What. The trend is I think, using moving averages can be, one, way to help, you in that, and basically. The gist of it is this if the moving average is sloping upward and the, stock is above, it we're, gonna call that an upward, okay, that's an easy way to do it if the stocks above and upward-sloping moving, average we're gonna call an upper trend and vice versa if the stocks below a downward-sloping, moving. Average we're gonna call it a downward, trend, now. You, may say but there's. Different moving averages, true. But, there's different trends, right, there's short-term trends. Short-term. Trends or trends we're looking for maybe less, than a month there's. Intermediate, term trends. Intermediate. Terms or trends, or you, know something, from maybe, a month to. Six. Months or or, more, and and long, term trends or anything longer than that if. We use different moving averages you can use it as an, example you can use a 20-day, moving average to try and give you a sense for the shorter. Term trend a 50-day, moving average to, give you a sense for the, intermediate. Term trend and a. 200-day. Moving average. To. Give you a sense for the longer-term trend now you may quibble. With that and say well no I prefer, to use a hundred day moving average, or 150, so, be it I don't care just be consistent in what you're doing today I'm looking at a 50-day, moving average and we could see that, our stock is slightly a but is above it and. The. Moving average is actually starting to go up so we're starting, starting. To, have this upward trend after our sideways, movement. Now longer-term, if we did a longer term moving average I'm sure I'd be showing up right now but, we, also have resistance, and support to deal with now, I'm not going to be focusing, as much, unresisting. Support, today but. It's. It's, still relevant right, even, in trend trades resistance. Levels can be relevant this, was an all-time high on the S&P 500 we're. Bumping up against it we bounced, off it there. We. Beck, let me let me pull out my handy. Dandy drawing. Tool here we bounced, off it here. We bounced, off it there. And. Came. Back down we're, heading back up towards, it is it going to break through if if. You're looking for an entry signal a, break, through is a possible. A breakout. Breakout, above resist. Is a possible, entry signal you could trade ETFs, on this or you can just use it as an overall market indicator, now. What. If we bounced down well, it. Could be a pot potential, bearish entry signal I guess if you wanted to shorter, term though because, even. If it goes up and bounces down even. Though this, may look down because. Our overall trend is fairly. Strela. Tively strong at least. We're. Probably going to be looking at a trench, right in that regard, okay hopefully. That, makes sense we do have some.
Support. Down here and support. There so, that is, that. Is large, cap stocks, I want, you to contrast, this though okay. I, want. You to contrast, what this chart looks like, let. Me I'm gonna go out just a little further I'm gonna go to a, well. Different. Let me go to a 9-month, chart okay, so, here's a 9-month chart and you can kind of see the gist of it here. Generally. Going up a, little. More weakness we, had a high there, are lows. By, the way something. I should point out on this one our, lows, have, gotten higher you. See that now. Highs. I've. Gotten higher lows, have gotten higher now. Let's look at small caps so. I'm gonna do our UT Russell, 2000. Which are small caps do. You see the difference, in that chart it. Is. Very different, our. Highs, are, not, getting, higher there's. A high, there's. A high in fact you know you could almost take. The high here. Draw. And forgive. My line. Drawing ability, is a little a little bit of a little, crooked but it definitely seems, like in this zone at least, we. Have some resistance there on that, okay, but, we had a high a lower. High and. Maybe. An it we'll call that equal there, a little. Bit more bearish. What about the lows. Low. Lower. Low, and, lower, so in other words. We've seen a lot more weakness from small caps than, we have from. Large caps this, has gone up pretty strong, and. Bouncing. Off the potential. Oops see. If I can get my drawing, tool back going bouncing. Off a potential, resistance. Level, there and if you're looking for a bearish, type entry, on that. Then. Consider. A closed below the low of the, high de, where. Was our high de our, high de was right. Here, see this candle right there fact let me clear, this out right. There that was our high de where. Was our low of that high de it, was right here. Did. We close below it yeah yesterday, yesterday, we closed below with that lower, the high today now I want to talk I want to I'm gonna focus more on trend trading here in just a bit but that, is a potential, swing, trade down. To you. Can go down to well. You. Can even use this if you want a fairly, aggressive target. But, you can also use pick, up some of these support, levels as intermediate. Targets, there on that okay, so, that's, large cap that's small cap what, about. What. About gold, what's gold been doing okay. Gold. Had a nice strong. Trend, we're, starting, to see a little bit of weakness here in gold. Just the last couple weeks. Before. That point, back. What I can probably do is I can probably even take, a diagonal.
Trend. Type line here, that. Well that'll. Cooperate, and that. Was basically the trend we had and, we. Broke through on that okay so. Let, me, we're. That. Out. Our. Low. Which. Is. Right. Here. Maybe. We've picked up a little support, here, interesting. We got our moving average still, an up above, an upward. Sloping. Moving average so we call that a positive trend probably. On gold. With. Some, consolidation, we'd. Expect, probably, in that case from. A technical, standpoint, and, of course I don't know what's gonna happen but but, if. Indeed. The trend holds before too long we'd expect a break, a break. Up, here, on gold now. Of course there's a lot of macro forces that can affect gold as well now. So, those are some just a few, big market, things but, let's look at some sectors, and see how sectors, are doing we've, seen energy, energy. Is, certainly if you just look at this chart and remember, what the S&P 500 look, like energy. Has underperformed, the, S&P 500, in fact it's been one of the worst performing sectors. I think actually has probably been the worst performing, sector over probably, most time frames are gonna look out here we, had a high. Up here lower. High looks. Like we're bouncing, down right here, still. Our. Moving averages, sloping down on that, so, that's Energy Materials. Materials. Is certainly looking stronger, potential. Resistance. Right. Up there okay. We'll. Go on down the list here industrials. You. Got some resistance, here, peaked. A little bit above that but when we're breaking resistance, you. Know that. First candle, is usually, not sufficient. For most traders to consider it a break of resistance, if it, Peaks above and then. The next day, it. Goes below or in this case right, back to it's. Still kind of in this wait-and-see mode so, we're, gonna wait and see on this if this, is a bounce, down. You. Can look for a close below the low of the high day if you want it's, a potential, entry or if. It breaks above, here. On that. Entry there here. Is consumer. Discretionary.
Yeah. Trends, kind of what's the trend doing do you see that how that trend is kind of flattening out and. It's. We. Kind of have, in. Terms of oscillations. Yeah. We had kind of this big. Of these, big moves okay, but. Now kind, of maybe is, this, starting to mellow, out a little bit a little less volatility, in that. Possibly. Staples. Is a different story, remember. Just chrétien Airy we had these big oscillations. Look, at staples, staples. Have, been a little more steady Eddie there and staples. In general, tend to be a little bit more of a conservative investment. Here in terms of. When. I say that what I mean is. Staples. Are more. Of a defensive, sector, and, so. A. Lot, of times staples, are companies, that maybe pay a little. Bit more of a dividend and I realize that's a generalization, but. That, tends to lower the volatility, just a little bit now they can still drop significantly but. This is a classic trend, right. And this is going to illustrate some, of the issues I mentioned, before, when I was talking about trend, where, I said help just looking for higher highs and higher lows can, be a little difficult, well, look we had a low here, and then we had a lower low here, here's. A high here's. A lower, high and this this high was actually equal to that high or maybe even a little bit lower here's a high here's, a lower high what's, the trend on that do, you see how it can be a little bit confusing, when, you start doing higher highs higher lows things, so we look in general our highs and lows getting higher. Or. Lower and you, can also use that moving average in this case viewing. It in relationship, to an upward sloping moving average I think it makes it a little bit clearer here this, one clearly. The trend is not as strong on healthcare health, care has been up and down and it. Is interesting, you, know some of the some, of the debates. In. But. Particularly if you watch some of the Democratic. Primaries. Norden up primers debates the Democratic, debates they're. The, subject, of health care is coming.
Up A fair, amount that's one of the big big, concerns. Particularly. Among Democrats. And, you. Know that can potentially, affect the. Health care sector. Financials. We, had a pretty strong run up on fine angels' you, know in, fact that reminds, me. In. Fact let me point this out to you, the. Other day, I. Did. A tweet, on this let me see if I can find it super quick I don't, want to spend too much time doing that oh yeah, so let's let's. Go but. Mike my tweet, is the text is cut off but, here's the graph of, well. Well you can see I think here top-performing. Sector, over the past month now this was a few days ago so it may have changed a little bit since then up almost 10% financials. Has. Gone up, this. Was financials. You. See that, why. Look. At the rates on the 10-year here's. The rates on the 10-year they started to head back up after a long period, of lowering. Rates so. You see that so that's. Something I mentioned on my Twitter account the, other day but. Let. Me go back to my, think. Or swim and you. Can see this, is here's the run up on financials. Still. To. Do is. That some resistance, maybe. Maybe. Some resistance, there on, that okay. Let's push, on through this general. Trend seems to be up on i.t i.t has been strong, for a long time you, know. Even. You know even looking. Back a little bit where, we saw some other, more defensive, type sectors, or non cyclical, type sectors, like, discretionary. Xand utilities, and doing, fairly well. Technology. Which is generally. More of a cyclical, sector, it's. Still performed, pretty well so, it was kind of the outlier there for a little bit Communications. Is, going, up potential. Resistance. I think right about there right so bounce. Down we'll see if it breaks through and. Utilities. Utilities. Has been strong. You. Know utilities. Tend to benefit. When. Interest, rates as a whole go down. Right. Because. You know there's two ways to think of it I think, one utilities. Traditionally. Pay, a pretty good dividend, well. If, rates. Across the border rate the bonds, in particular, are going down it makes, them less competitive with, these utility, companies so utilities. Seem to look better when. That also utilities. To be pretty fairly, highly leveraged and so, their borrowing costs go down there with RIF rates go down and. Finally. We, have real estate classic. Uptrend on real. Estate there okay so there's our index review that, is our our. Sector. Review. Now. I want to talk about finding trend trades okay. Because, I know a lot, of you are probably fairly. Familiar you're with swing trades, and bounces. And cold. Entries, you, guys have probably heard of that close above the high load a type, entries but, I want, to just kind of visualize, this for a second what I'm talking about if we look at a stock that's trending, up okay. Here's my stock that's trending up okay. One. One approach, to it is to. Look at it and say hey, I'd, like to, get. In here, and exit. Here. And I, want to get rid of this, area. On. It right, the challenge, is and take, out these dips, and I could have drawn the dips a little bigger may, be good to try and take out the dips let's swing trading trying to get rid of those dips for the most part, but. The challenge, is it's not always easy at a time that is it right. And. And. So. Some. People say look if I just get in I. Hold. And. Stay. In I'm. Gonna stay in through the downs in the ups and. I'm. Hopefully, over the time it's. Gonna last, and that's, trend, training now, Chuck asked a great question Chuck. Asked a question call said Brent. Are there ETFs. That correspond. With, these. Sectors and the, answer is yes. Chuck, there, you are, now, I don't have a list for you right now but there are etf's that correspond, with all those sectors, one. Thing I could encourage you to talk about to just do is join. Me tonight at 7 o'clock Eastern, Time I'm teaching a class getting. You, to study, well it's anybody ETF something about ETFs using, ETFs in your portfolio's, than it is the, name, of the, class that class, is not officially, archived, so you'd have to join me live but, if you'd like if you can attend, that class. Again. 7 o'clock tonight. Using. ETFs in your portfolio, then. What, you can do is you can use good old Google and you. Can just type in you. Know financial. Sector ETF, or energy, sector ETF and you, will find ETFs, on those one just note on ETFs, make, sure that you have decent liquidity on those ETFs, ok, some.
Of There's some big ETFs. Out there, that, have good, liquidity, on, those but, just double check those all those sectors do have ETFs, great, question, ok so the question is. When. Do we enter, if that's the goal of trend trading 7:00. Eastern 7:00, Eastern Time let. Me just double check that time I'm pretty sure 7:00. Eastern Time yep tonight 7:00 Eastern, I. Usually. Tie and talk in Eastern time zone just because it, gets confusing, I'm not in Eastern time zone and I wish everybody spoke in Mountain Time Zone but I realize that's not the world here that. We live in so. So. I try and convert everything to 7 o'clock Eastern, Time alright, so. Here. Is, so. True we know when to get in these. Trend trades how. Do we know when to get out these. Trend trades well you can get in using entries. Like the cold. Or close above the high of the lo day, entries. That's certainly, acceptable. But. The difference, is. But. The difference, is, that. It. Is that your exits, right, on the swing trade, let's. Think about a swing trade here. And. I'm course. I'm talking in generalities let's, say we get we hit a bounce, right we get in and. The. Stock is going up and it's. Starting to show some weakness on a, swing trade we're probably trying to look to maybe. Exit. Or get, close to exiting at that point okay, or maybe at that point right, swing. Trade we're not going to do so so. So. Entries, can actually, be the same, either. Way. But. But. The exits are going to be different because you're going to exit. More. Quickly. Likely. For a swing trade than, a trench right now sometimes. You, get in and what's it gonna be you think is gonna be a trench raid and it immediately. Goes, to pot you know it goes goes way down and and so what you're planning on being in for a few months maybe isn't. Isn't, gonna last right, you're, gonna get out more quickly but, in general that's not going to be the case so. One. Way to do it is to go back to something I mentioned before, and, that. Is. Moving. Averages, okay, you can use moving, averages here, on this so, let, me switch over and I'm. Gonna pull up. I'm. Gonna pull up. I'm. Gonna go to public, watch lists, and I'm. Just gonna pull up the Dow Jones, Industrial. Average here, as an. Example okay, and. So. These are not recommendations. Obviously, these are these, are just dow stocks, here but. To illustrate. Notice. One way you to do is you could look when the stock crosses, above or below a moving average but I'm going to mention, in a slightly different way I'm, gonna throw on a second, moving average here. I'm. Gonna throw in a second moving average and. Put. On two moving averages at the same time on the on the chart one, shorter, one, longer now, Francisco says is a breakout, of trend trade a breakout. Can be the entry, of a trend trade it, can also be the entry, a swing, trade a breakout, can be either. Right. A breakout. Can be either and, so. And. So. Let's say. It's. The exit, remember, that's going to determine whether, it's a swing trader train train okay. So I'm gonna go up to studies. And. If that's not it doesn't make sense Francisco. Let me know or anybody else I'm, gonna throw in a second, simple moving average now you can use exponential. Moving averages, if you like but. I'm just, gonna put on simple. Moving averages, and I'm gonna use I think. A fairly. Common. Length. Of moving. Averages, I'm. Gonna use a 10 and a 40 my. 40 will be green. And I'm just gonna change the color to make it a little more clear and this, one's gonna be red and I'm. Gonna make this a. 10. Again. Apply. Apply. That should look that's work okay so, here's American.
Express I. Have. Two moving averages on here ones, in red ones, in green the, shorter-term, one is in, red and you can see that by looking at the top of the page up here or you. Can also just kind of reason it out the shorter term term moving average is gonna be the one that hugs, the price data more, closely you see how this red line is hugging. The price candles. More, closely than the the, green one so if you ever get confused that's. One way to do it but it also helps to use different colors here. On this so. One. Way to do it is to kind of consider it more bullish, if the if. The shorter term crosses, above the. Longer term here, would be our bullish, signal, now, is that a possible, trade signal that is a possible, trade signal. What. About the exit. Where's. Our eggs are well our eggs are would be here on this one okay. Right. There if using. This method, it's, not the only way to do it it's, not a perfect, method but. Now consider. This trend, trade in contrast, to swing trades. Consider, this trend trading contrast, to switchers how many entries are exits on would you be on on a swing trade a swing trade you're probably not going to sit, through this or sit. Through this or even. Some of these smaller ones you're probably not going to sit through now. In this, case I don't mean take this one actually on American, Express what just happens to be our first stock it happened, to work out really well because we had a kind of a bullish market. It. Doesn't always work out so perfectly let's check out UTX. It's. Not always you know it's not always as clear-cut where's. Our bullish signal where's our bearish signal the. 10 crossed above the 40. Here. We're. Not, here's. Our exit now, look, at this one here look at this next one I'll draw a square, around it, entry. Exit. That probably would have been a loser right there, this. Top first one would have been great this one would have been a loser right they're not always winners be.
Nice If they were here's. Our here's, our answer if we're gonna use it as an entry signal on. That do, you see how easy that is no, there's a lot of different ways to do it. Let's. Go to Microsoft. Same. Thing now interestingly. We. Kind of get whipsawed a little bit on this one entry. Exit. Now, some people will actually use a couple day buffer, on this if you, want and then. Back. Entry, you know so and then there's, your eggs and if the stocks going sideways then, we're probably not going to do it there, so, we're, gonna look generally, for the trend there on that you see how that works now. How. Do you find these well. Of course you can have it you can have a watch list of stocks if you want and just go through them as easy as this look I'm just scrolling through in this case the Dow. Here's. Dow stocks. But, you, could go through any watch list you want on this now. Notice. I'm at a nine-month graph you don't have to use a nine-month, graph exactly. But. The, key is it's, daily, data if. I'm using a. 1040. If, I have 1040 period moving averages, on daily. Did it's a tenth day forty day ten 1040. Crossover. 1042 crossover but if I change this to. Say. A five-year. Weekly, graph or something like that it's. Not a 1040, day crossover, it's a 1040, week crossover, which is a very, long long. Term plan this, I think. Is. A fairly, reasonable. Get, no guarantees, but it's a fairly reasonable kind of intermediate. Term trend, trade, type. Lengths. On that. Now. You can do something shorter you can do a 5 and 20 if you wanted to that'd. Be a little bit shorter term probably but the know, which. Have. You guys ever heard of say a death cross or, a. A. Golden, Cross that's. A 50 200 okay. I'm. Not saying one is better than the other. Experiment. With them play with them see. See. What you like now if we want to find these let me show you a little trick. Perhaps. It other than going through I think just going through a watchlist certainly makes sense on that but, you can scan for them we click on scan look you, can go to scan and I'm. Gonna go I'm. Not gonna scan all stocks I'm, gonna scan, and, let's do S&P 500, here know about. It. And, by the way you can always you, can always save your scan. So you don't have to recreate this each time I'm, gonna go to add study, filter, I'm. Gonna go down here to. Crossovers. Well. I'm, gonna go to moving. Average crossover. And, we're, gonna say, the. Ten period, just to be consistent with what I used before ten, periods simple, crosses. Above. The. 40 period, simple. And you can change that to exponential, if you wanted to and. We're. Using daily, data there okay. So. I'm going to click on scan and. We've. Got a few all, right and. Let's. Let's. Now, let me just save this, save. This. Watchlist. Cross. Overs. And. Today. Is the September, 19th okay. Oops. September. 19. Okay we'll, do that we'll save that and now I'm, gonna go to charts, I'm gonna go over to my watch list I'm gonna go to my personal watch list here. Crossovers. September, 19th, and. We'll. Look at them there's. A crossover. You. See that. Here's. A crossover. Delta. Airlines crossover. Okay, so. And. You, can go forward and look now this doesn't tell me anything else other, than it's a crossover dependent. It just depends on what you put in the scan you can put in other stuff in the scan you probably want some liquidity measure, well S&P. 500, stocks, you. There's, probably a certain level of liquidity there in the first place anyway but you could throw in earnings, there if you want you. Could you, could throw in whatever you want there I just want to show you that's, a kind of an easy way to do a crossover there okay. Can't, says. If a buy, trigger, is winter stock ETF prices across above the moving average would you consider shortening, or buying in first. So. So. Kids saying hey if you, want to trade bearish, on the market. Instead. Of just saying this, is a but look, at this stock here for a sec here, instead.
Of Just saying this is a buy and, and this, is a cell if. We're bearish, could, we say I want. To buy a put, option or, short the stock, here. And, then. Close. It out here, I don't. See any reason why you, couldn't. Take a bearish, approach, using. The same system right. There's risk either, way just. Know the risks of what you're doing if you're doing put out if you do a long put options or something like that know the risk of your long puts there, but. The. Detect, in principle. The technical, system, can, be flipped exactly, as you mentioned, Kent alright, okay. Let's. Go and let's, look at. This. Where, are we we, talked about how, to find trend trading opportunities. In trend trading see. That okay. Now. Final. Thing. We're. Running a little short on time here, trade. Management we're. Going to go through in, James. I spoke, with James before I subbed his. Session. James. Mentioned. Some. Some. Trades he wanted to to, look, at here and so. We're. Gonna go through and, take. A look at. Some. Of his stocks actually he mentioned specifically. Looking. At. Boeing. And Microsoft. And Amazon and Facebook here, so let's let's, take a look at some of these, now. Let's. Tie this back, in to, our, discussion. Of what we talked about today we. Talked about, trend. Trades and we also mentioned, in the context, of swing trades so, what's your exit going to be the exit, is going to depend on whether it's a swing trader at rent rate actually right now it's. Probably either. When, he entered, this trade he has a limit, price right up here in. Other words he's gonna sell out. Actually. What is that let's. Let's let's take a let me get out of my drawing tools let's see what this. Hold. On one sec. Come. On. Well. I'll do it this way. Okay. All. Right. See, everything he has I'm bowing here just. The. 1x2. Close, a put okay, so, that's an option trade, here well let's go back I don't want to get too too, distracted, or caught up on this okay so. That. There. Goes, he also has an. Order. A stop. Order on Boeing, here on this if it goes up right now is it things are going pretty hunky-dory, on this you, know even, if you're doing a swing trade. It. Doesn't. Just, because we have a you. Know we're down a little bit today on this, down. About a half percent, see that that's nothing nothing you can't swing trade that tightly unless you just plan on being in the trade. For a couple days in terms, of the trend well. Look, trend. Trade looks, like we're going pretty good we have higher, higher. Lows and higher highs going. Up we're above moving. At in movement day moving average a forty day moving average the trend is going great, and. So. No. Particular. Weakness on that. Right now let's. Go to the next stock on the, list here that we, were looking at management. For what, about Microsoft. Interesting. Because Microsoft, has, gone up it had a nice. Nice. Trend, didn't it very. Nice trend in fact using our crossover. System we had an entry, little. Whip saw their exit. And. Now. We're, just in this sideways, pattern and if you get in this sideways, pattern. Look. That's. That's, not an ideal. Entry. Typically, for that most people look for in terms, of, either. If. You're doing a swing trade. You're. Either trying to get in a support, in fact this goes to the question earlier could, the question was could, a breakout. Be used as a trench right yeah you could use a break out as a trench right let's, say we, have, resistance.
Here. We break above, that is that, a possible, entry for a trend trade that, is a possible, entry for a trend rate is that, a possible, entry for a swing trade it is a possible, entry for a swing trade as well there now in this case it happens, to coincide with our, crossover but in general without the breakout there with, this, this, sitting here this here this here this here this here we got a lot of resistance, if we're going sideways so resistance, can certainly, play, a factor, in. In. Even, trench rage or longer term trades as we, look at that let's take a look at Amazon Amazon. Kind. Of same deal, not much of a trend, more. Sideways. Right now on that. On. That, trade there okay. So. Probably. Not going to be super patient either, either, trend, trade or swing trade with, technicals, that look that way there yeah, yes, Microsoft. Had. Some huge news yesterday on, that. Stock. Buyback, they also they. Also talked. About, a. Dividend. Increase. Up in the dividend I think right so. They. Increase our dividend I, don't know I don't want to say the number because I don't I'll. Probably get it wrong but, big big, day. For Amazon. Facebook, again, same deal it's, a lot easier, to. Make a trend trade wind the, stock is trending up. We're. Not really trending up right now we're, going a little sideways, same thing with swing trade not, much there let's see if any, of these look a little better here's. Another one, James, had, in. XP. I there. Now we have a trend all, right we got higher highs and higher lows is. One way to look at it. Low. Low, low you see all those lows can progressively getting, higher. For. Swing trade went up went up went up we, had a close below the, low of the hide a four so swing trade. Would. Likely be, out at this point, trend, trade hmm. You see this illustrates, the difference between trend, trades and. Swing. Trades. Okay. Just, have two more. On. James's, list then we'll call it them. Call it a day probably at that point trend. Is generally going up we. Have our 1040, crossover. Swing. Trade not. Much swinging, here well I mean there there is some swinging but they're kind of up and down up and down, it. Kind of just depends on your exit rules on that and here's a maybe a. Here's. One that kind of a nice slower. Trend. With. A, 1040. Crossover, on that alright, so. Let. Me just kind of recap. Here for, a sec, before. We before. We call it quits we, looked at some. Of the major indexes we talked about how large. Caps we're. Doing fairly. Well small. Caps a little. Strength of light but in general have been underperforming large, caps for a little while and. We. Looked at how gold was doing we, looked at different sectors, and which. Ones were stronger, and and. Not as strong we looked at different trends. Trading opportunities. Including. Using a moving average to assist, you in your. Trend. Trades and. In, terms. Of taking, it one step further we talked about a 1040, crossover, system in order, to try and identify trend. Trade entries, and exits. We, had some good questions along the way and I appreciate, those questions and then we looked at a few of those, stocks, that, James mentioned. One. Last. Thing, here is coming up next we have Ken Rose. Teaching. Advanced, options strategies that's at three o'clock Eastern, Time and, if. You. Are interested, this. Is my, twitter, handle if, you, want to follow I I don't, tweet.
It Maybe a couple times a day about, generally. Market. Related stuff, you can kind of see some of that stuff there I would, invite. You to. Follow me there, and, thank. James for coming. Up for you next step run a scan find a potential, trade and. Paper. Trade it you can do that on stocks or options doesn't matter stocks, are options do, your trend trade and then. Just. Remember that. In order to demonstrate the functionality the platform I had to use actual symbols however TD Ameritrade does not make any recommendations, or disturbing suitability, of any security or strategy for individual traders any investment, decision you make in your self-directed account is, solely a responsibility. Thank, you everyone, for joining me today I think James back next week but, in the meantime, have. A great great, week bye bye everybody.
2019-09-29 00:33
