This is how to succeed in chop!
Choppy markets are opportunities! When market behavior shifts (as it’s been doing lately) you need to know when and how to shift your strategies, along with choosing the right sectors to focus on.
Learn how to look at the markets from the right angle. Once you know which sector to look at then look at the stocks related to that sector. They are some of the most important shifts that you can make as a trader.
Think sector, ETF, stocks…
With that being said, I wanted to show you what we’ve been doing in my Sector Secrets Mastery. Since February 25th I’ve taken 19 trades and 18 were winners.
The opportunities that we have out there at this moment are not in the NASDAQ, and they are not necessarily in the S&P either. The opportunities are a little bit more granular – they’re in the individual sectors and stocks that are relative outperformers.
What does that mean?
Things like KB homes and Toll Brothers are tethered to a narrative… home construction and home builders, which are doing quite well.
This will go with the QQQ who is the NASDAQ relative. Typically speaking, this is a completely different psychology at work in the NASDAQ, as opposed to XHB. XHB gets us even more granular by looking at Toll Brothers and by looking at KBH.
Although we’ve already moved from our entries to our first target, frankly, we could look at jumping on this again. That’s where the best kind of trends come from, where we can roll with trends instead of parabolic accelerated markets. It never ever seemed to come back to us for a retracement where we can buy again.
These have been, and this is more healthy for a trend tracing after moves higher.
So let’s use another example here…
Let’s go back to some of our trades and what we’re looking at right now – that’s bridging our trading and futures with the ETFs that are available to us.
Now, a few issues back here in countdown trader, we had talked about the importance of understanding the current macro environment. CORN, SOY, XHB, Toll Brothers and KB homes – those are all in that macro picture. They all work.
You might say, “What did corn and home builders have in common in this macro environment?”
If you know where to look and when to make that shift, you’re going to be able to follow trends like this.
These are the keys to knowing when to shift and therefore knowing where to look.
This has been the conversation that we’ve been having for weeks, if not months, and now we’re taking it to, and making some nice profits through futures contracts, options and stocks. This is not the time to sit on the sidelines…
Stop missing out!