Why the Stock Market Falling Equals Opportunity

Why the Stock Market Falling Equals Opportunity

SPY ETF Chart 12.3.19

SPY ETF Chart 12.3.19

The stock market is finally giving us a reason to be a buyer.

Not quite yet but we have the start of a better trade. One of the biggest mistakes unprofitable traders make (over and over again) is chasing price. They desperately want to place a trade because they are “traders” but often the reward is small compared to the risk.

With price action offering a healthy decline yesterday the distance between a profitable trade and reward potential is increasing. 

Thus increasing the quality of the idea.

The ATR (average true range) of the SPY ETF $1.93. On Monday the high to low was greater than the average, AND closed in the lower 10 percent of the trading range.

All good signs that set up my next trade with high probability to be successful.

What I want to see today is for the SPY to open lower, trade lower the distance of the ATR ($1.93) If this happens then is sets up a trade for tomorrow that offers great reward with lower risk of further decline.

That's my plan for the next 2 days. My best case scenario. Anything away from that lowers my conviction in the ideas.

Have a great day.

Pete 

Retirement “reset” coming on 12/11/19

On Wednesday, December 11th, 2019, retirement will essentially “reset” for thousands of people, overnight.

Make sure you’re there when it happens… and see how it could help you make $200,000 next year.

Register automatically for the full story. 

Trump says China trade deal might have to wait for 2020 election

“I have no deadline, no. In some ways I think I think it’s better to wait until after the election with China,” Trump told reporters in London where he was due to attend a meeting of NATO leaders.

reuters.com/china-trade-deal-2020

Tesla has rallied 55% in the last 3 months—here’s where two investing pros would buy in

cnbc.com/tesla-up-55-percent

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Disney (DIS) stock closed trading at $151.58 on November 29, rising 0.07% from the previous trading session. The company’s share price continues to reach new highs on optimism related to the Disney+ launch.

But should you buy it now?

marketrealist.com/disney-stock

Pete Renzulli
 

Click Here to Leave a Comment Below 1 comments
Raymundo Cersey - October 4, 2020

hi!,I like your writing very so much! share we keep in touch more about your post on AOL? I require an expert on this area to solve my problem. May be that is you! Having a look forward to peer you.

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