This was a great day for subscribers that get a glimpse of my trading plan!
As you probably already learned the fed cut rates by .25 basis points. In my opinion, I thought they should have cut by .50 basis points and from the market’s response, I think the majority of market participants felt the same way.
As many of you know, for the past few days I’ve been posting how the market has been rising on low volume (remember low volume moves to the upside are suspect), that I’m keeping the portfolio light and how there was more risk to the downside than the upside.
As I filter through the ETFs, there are no setups for tomorrow’s playbook because of today big move, so I thought I would send a sample yesterdays playbook and how much each trade is in the money.
Tomorrow will be a day to sit on my hands, let the positions work and mitigate any risk.
The image to the right is what I sent to subscribers last night. It shows the direction I attempt to play, the entry price that the ETF has to trade at to trigger an entry signal, the average volatility of the ETF and how many shares I anticipate trading.
The image below shows the trades that were triggered and how many points they are “in the money” (maximum for the day). Basically, you can multiply the “In Money” column by how many shares you would have purchased. Click on the image to enlarge it.
Mike Matousek, CMT
Portfolio Manager, ETF Updater
http://etfupdater.com/
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