Shawn Vincent is joined by John Frost, a new adherent to the A.M.P.D. strategy, and they discuss technical patterns — such as Head and Shoulders and Cup and Handle — and how those patterns can help traders determine when to take a position in an equity.
The new year brought heavy selling. The QQQ had its first down week since October. A.M.P.D. traders anticipated the consolidation, let their protective stops do the work, and now they are curating their watchlists so they are ready when the market makes its next move up.
A spring rally, a summer slump, and autumn opportunities: Adam Sarhan looks back on last year in the market.
After a brief pullback on Wednesday, the market continued it’s bullish march upward. As we move into the holiday, Adam explains that the last week of the year often sees low volume and a slight upward bias — what some people call “The Santa Claus Rally.”
Adam Sarhan believes that we’re likely at the beginning of a big bull market. Traders who missed the beginning of the rally are having FOMO and looking for opportunities to get in. Adam says there are still good entry points, but they may come with more risk if the market gets too extended.
We’re still following the QQQ as the leading index. This week support was defended around the 21-day moving average. While we are in a sideways consolidation, there are new breakouts and the bulls are in charge.
While the Nasdaq and QQQ pause to digest November’s rally, the other indices are rushing to catch up. For A.M.P.D. traders it’s a time to be patient, wait out the sideways consolidation, and give their trades time to digest recent gains and make the next move. Also, Adam reflects on the life of trading giant…
While Adam Sarhan is watching for a healthy pullback after the explosive growth of the recent rally, some A.M.P.D. traders have asked whether it is too late to take long positions in this current trading window. Adam points out important considerations for late-rally buying and describes his personal brand of “risk-adjusted optimism.”
After big gains in the Nasdaq and the QQQ, A.M.P.D. traders were watching for these indices to pull back and digest the big move. Instead, we’re witnessing a sideways consolidation with very narrow price action, which Adam says is a very bullish sign.
The new rally attempt saw a shallow consolidation on Thursday followed by a big up day on Friday. Adam Sarhan says the technicals look bullish in multiple time frames, and he’s seeing lots of stocks forming bullish handles.
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