Market Updates

Friday Night Notes: 05-15-15

Welcome to Friday Night Market notes with yours truly.  Here I discuss my trading week and how I see the market — more specifically, the Russell 2000 Index Fund $IWM which tracks the small cap stocks I trade.

If you want more info you can Follow Me on Twitter or Like Me on Facebook. If you want to learn more about how I trade, check out The Beginner’s Guide to Breakouts and this quick blog post which details my process.

With that said, let’s move on.

Market Notes: Personally, this market is driving me nuts.  The worst type of market for me is a range bound market because I can’t stand the back and forth as the market works out it’s direction.

Last week I took a couple TZA trades that I ended up closing for small losses as they moved profitable and then slid back. That’s enough to test my patience.

But the goal is not to let those emotions get the better of me.

In the past I’ve given up after a few attempted trades in range bound markets only to watch the market pick it’s direction and move on without me.

To me, there is no bigger sin in trading. Always stay focused, always stay alert and be in tune with what is happening — even if you don’t like it.  Even if it makes you uncomfortable.

Okay, enough whining — let’s take a look at the charts.

HOURLY CHART

IWM hourly

Here you can see the back and forth I’m talking about as we’re bouncing around in this range. If you don’t trade ranges (I don’t) and you’re looking for a breakout or a breakdown (like I am), you can chopped to pieces in a market like this.

So are we breaking out now on an intraday basis? I want to say yes, but we’ve seen how that goes.

DAILY CHART

iwm daily

Chop city.  As you can see, we dropped out of that huge rising wedge on volume and down through the 50 day MA about 10 days ago — so I’ve been looking for downside trades — and nothing.  Nada.  The market does not want to go there yet.

So be it.

If we reclaim that 50 day MA then all downside ideas are shelved — at least for now.

WEEKLY CHART

IWM weekly 2

There’s no denying that the trend on the weekly chart is still up and that the $120.69 support level is holding so far. Will this bounce hold and push us to new highs? Only the future knows.

TREND OVERVIEW

  • Hourly: UP
  • Daily:  DOWN/SIDEWAYS
  • Weekly:  UP

Until next time, good luck out there.  And don’t forget to like us on Facebook, follow us on Twitter, and check us out on Instagram.

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