Pivoting With the Market!
I just wanted to give a quick update on how AoT pivoted with the market last week and hopefully how you can implement some of these ideas into your own trading. Later in the post we will take a look at what to look for next week, followed by some valuable AoT member feedback!
With the recent develops with $SIVB and all of the market moving news that surrounds that issue I think this is a great time to cover this topic. Volatility will potentially push higher, staying flexible and openminded to market flow will be crucial for short term traders.
So, how did AoT navigate the market last week?
Monday through Tuesday of last week (03-06-2023 / 03-07-2023) the market saw a 2 day pullback after a healthy rally off of lows made 03-02-2023. I was watching this pullback closely and started seeing MACD & RSI divergences on 10 minute time frames.
Here was a tweet I made to AoT members highlighting this observation:
Going into the next day 03-08-2023 The MACD/RSI divergences were very much intact signaling a potential bounce. Here was that update:
The market started flexing some strength out of the open on Thursday morning but it was VERY short lived! Paired with the recent weakness in the market I suspected if the market wasn't able to hold onto a gain the likelihood for more weakness ahead was heightened!
We closed our remaining long position which still had profits attached to them at the time and quickly opened a new short position to play the weakness in the market! Thursday was the pivot point this week, which quickly punished short term traders who stayed long but rewarded those who went short on the weakness!
Here were the series of alerts emailed to AoT members on Thursday. On average AoT makes 2 - 3 new trade alerts per week so Thursday was a very busy day for us!
We went Short $U at $29.08 on Thursday afternoon after closing our remaining profitable long positions in $ALGM and $ABNB earlier in the day!
Here was the Alert for Short $U:
Learn more about trading Bearish PEG setups just like this $U setup at this link here.
After the quick pivot I had an AoT private member tweet me about the quick pivot we made!
I shared my thoughts here:
We remain short a half sized position of $U into this week 03-13-2023!
So, what am I looking at for next next week? Is there another potential short term pivot?
Speaking of a potential pivots in the market, $NYMO & $NAMO are now digging into oversold territory! $NYMO & $NAMO is one of my favorite indicators for short term tops and short term bottoms in the market. Oversold marks potential reversals to the upside and overbought marks potential reversals to the downside.
Next week look for some early weakness that potentially gets bought for a powerful short term bounce!
Here is what I tweeted AoT members Friday evening (03-10-2023)
To finish this post off I'd like to share some feedback I received from a NEW AoT member WHO STARTED THIS WEEK and benefitted from the quick pivot we made last week!
AOT Member feedback:
"Got some winners this week in CBAY, AFRM, U, NVDA
Whiffed on SE which I tried to grab going green for a PEG R2G but I think it was too late in the day to qualify? Not sure what your thoughts on are on this one but it was a small loss.
Also, your posts Wednesday about the divergences going into Thursday kept me on the right side of the market....Then when you started talking short I stayed on the right side of the market going into Thursday afternoon!
All-in-all a successful first week which I can directly attribute about $500 to your calls and even more with the SPY/QQQ trades I made.
Looking forward to more!"
This is the sort of feedback that I look forward to hearing from AoT members. The essence of AoT is exactly what this member achieved this week by taking my ideas and turning them into profitable trades through their own strategies.
This is exactly what builds strong, profitable and most importantly confident traders. This is what makes AoT so much more than a run of the mill alert service!