Happy weekend! Hope your trading week was AWESOME and hope your work week sailed by.
Of course it didn’t because we all know that office hours pass at 50% the rate of normal hours.
And of course, that means that weekend hours pass at 150% the rate of weekday hours.
What does this mean?
It means you THINK you are working 5 days and getting 2 days off. In reality, you are working 10 days — and getting 1 day off!
Don’t check my math — but that’s how it feels!
Anyway — in attempt to get out of the office life for good, let’s check these markets and think about those days when we are all going to be wealthy gazillionairs!
From the hourly we can see it was pretty much a flat week. Up for the first half and down for the second. Nothing at all exciting here.
The big standout for gains this week? $TXT.
Textron, Inc is crushing it with what looks like a nice GAP N GO candidate with lots of volume coming out of a VERY clean continuation pattern.
If you have read about how we trade, you know we are all about Breakouts, Continuations, New Highs…
Here’s the TXT chart —
So what is a GAP N GO pattern. Just how it sounds. Price GAPS higher on big volume (usually an earnings surprise) then continues higher over the next few trading sessions.
For an example we just have to go back in the TXT chart itself.
See that? A perfect example.
Man, this daily chart look ominous as hell! Which is why I haven’t really been trading that much lately, waiting for this price action to sort itself out.
Right now — we have that rising wedge and price falling out of it at the 50 day moving average.
Not good, my fellow retail traders. Let’s see how this plays out.
And let’s look to the weekly chart for some help.
Here you can see this massive channel we’ve been traveling up for all of 2017 into 2018 and now we’re dealing with some very large range bars and some BIG volume and what might be a change in personality.
And that’s what is making me stop and think. But as always, we follow the market and look to price to tell us what to do.
For now, on the long term, we are above the 50 week moving average and that’s the truth of where price is.
One breadth indicator that has been giving me a slightly positive vibe about what’s to come is the Advance/Decline line.
You can read more about it here but essentially what it does is track the number of stocks rising against the ones that are falling. And here’s the chart —
On the chart above you can see that while the S&P 500 (white dotted line) has been tracking lower, the advance/decline line (green) has been tracking higher, which means more stock have been rising than falling.
So it’s our job to find them! Which is what i will be doing in the coming week.
Until then, keep the dream alive, and don’t let the office get you down.
And remember — the market is yours!