Stock Market Shows Coronavirus Exhaustion Volume 2-26-20
Welcome back to Smart Money Alerts for Wednesday February 26, 2020.
Yesterday afternoon we called a bottom in the coronavirus selling. Our tape reading tactics showed us the correct price action/volume criteria to make the call.
But here's the key...
That doesn't mean to be a bottom-picker. It means to tighten up you stop loss if you were short. Then the next step is to identify price levels that warrant a new long (buy) with a reasonable risk.
In this chart I've outlined the levels I'll be watching today (also show you the levels from yesterday that showed me the price to short sell).
In today's episode of Stocks for Breakfast I demonstrate how to find the right price to start looking for a new long. I use the SPY ETF as an example but you can do the same for your favorite stocks.
A major lesson from this week is that trading the news is different from trading the charts. With experience you learn to read the tape differently, with different game plans and risk profiles.
Day trading versus swing trading game plans have different goals and trading plans. ( I discuss this in depth in today's video).
And finally I teach a lesson on profit-taking and use AAPL Apple Inc to demonstrate the correct place to exit your winners.
We also discuss how to buy the right amount of shares for your initial entry.
If you have any questions send an email: [email protected] or leave a comment below the video on YouTube. Be sure to subscribe to the channel to get notified of updates.
Have a great day!
Pete
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