Interesting stuff !Freeballinginawetsuit said:Thought I might add my two bits worth to this thread, I am a new member to this site so probably not up to speed with you guys.
Over the last few months I have been adjusting my trading rules to the current market situation.
Previously I had a bullish bias and would enter stocks I had charted focusing on MACD, set my trigger just above volume confirmation and move up my stop/loss to my pre-determined POR.
In the current market I have been closely watching the stocks that have strong initial breakout after a market turndown, or even breakout on mildly bad market days.I then chart their POR and enter only in a bad market, ride them through the channel and above their last spike. Even when momentum is positive I exit at this point. The next time I enter this stock is when the SP falls just above the point of resistance of the prevoius channel and I repeat the process.
I have done this on 4 occassions with KZL in the last 3 months, 6 occassions with PDN, 6 occasions with ZFX, 4 occasions with SMY, 3 occasions with BSG
2 occasions with BPT and 3 occasions with ROC. Average return has been approx 15% per trade. I only do this with sound fundamentals stock.
In the current unpredictable volitile market this is the only entry/exit strategy that I feel confident in and free's up cash for the envitable next down spike. Its crude, basic and not all that technical but its low risk and has certainly worked since May.
I like freeballing in the summer with just shorts
Bob.