NYSE: Risk Model for Swing-Traders
Stock Market Ramps Higher on Friday, July 15th, fueled by strong earnings and economic data
Stronger-than-expected retail sales in June fueled positive sentiment in the stock market. But Wall Street also got more good news when some inflation components of the Empire State manufacturing index and the University of Michigan consumer sentiment survey eased inflation concerns.
Also, the stock market responded well to the higher than expected CPI inflation report last week. This indicates that the market has already discounted a lot. UNless we do see a major depression type of environment, we are likely clode to a bottom. More time might be needed to digest the recent bear market declines.
Now it is highly important to watch your stock lists. New leaders of an upcoming bull market bottom first, sometimes months ahead of the major market indices.
Our risk model for swing traders show an average risk rating. Swing-Traders should try their first pilot buys, exposure should be in the range of 25%. If stocks in your own portfolio start working, decrease risk quickly by adjusting your stop losses. Use your gains to finance the additional risk of new buys. Overall exposure should currently not exceed 50%, even if your pilot buys are working.
Risk Model
- new 52w highs vs lows and # of stocks abive/below their 200d MA is still in the red zone. Much more improvement is needed here efore we cann call it an easy dollar environment again
- up / down volume is the first critical indicator which is in the green zone now. A very encouraging signal that we may have reached the bottom
- the contrarian indicators margin debt and bulls vs bears also confirm that a new bull market might be close
Stronger-than-expected retail sales in June fueled positive sentiment in the stock market. But Wall Street also got more good news when some inflation components of the Empire State manufacturing index and the University of Michigan consumer sentiment survey eased inflation concerns.
Also, the stock market responded well to the higher than expected CPI inflation report last week. This indicates that the market has already discounted a lot. UNless we do see a major depression type of environment, we are likely clode to a bottom. More time might be needed to digest the recent bear market declines.
Now it is highly important to watch your stock lists. New leaders of an upcoming bull market bottom first, sometimes months ahead of the major market indices.
Our risk model for swing traders show an average risk rating. Swing-Traders should try their first pilot buys, exposure should be in the range of 25%. If stocks in your own portfolio start working, decrease risk quickly by adjusting your stop losses. Use your gains to finance the additional risk of new buys. Overall exposure should currently not exceed 50%, even if your pilot buys are working.
Risk Model
- new 52w highs vs lows and # of stocks abive/below their 200d MA is still in the red zone. Much more improvement is needed here efore we cann call it an easy dollar environment again
- up / down volume is the first critical indicator which is in the green zone now. A very encouraging signal that we may have reached the bottom
- the contrarian indicators margin debt and bulls vs bears also confirm that a new bull market might be close
Combing the BEST of two WORLD's: Cathie Wood & Mark Minervini
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