Time-Sentiment and Technicals are the 3 components of successful swing trading. It is almost impossible to remove one of these elements and be able to have consistent winning swing trades for 1400 SPX points. TIME: If you missed our last article we wrote on September 15th, then you missed our warning of a “Beige Hole” mini crash that was scheduled for September 17th, which was identified 2 weeks earlier.
Knowing “when” to expect these big moves is the most important aspect of successful trading.
Time-Technicals-Sentiment Swing Trading System
TIME: Timing the stock market or knowing when to look for a reversal, is the first and most important piece of our swing trading system. But can the markets be predicted? The reality is that, yes. Markets can be predicted! You won’t hear that on TV because they don’t understand how. They have not really studied the Market. In fact, markets are much more predictable in the short term, which is really all you need to know-with these 50-100+ point swings we have been seeing!
There is a timing technical turn date do on 10/06/15, which should be a top to this rally. But there are a couple others that are important dates pending as well. Volatility is not going anywhere and you have to anticipate when the markets are going to reverse.
TECHNCIALS: Once you have the “when” it is set to reverse, then you can start to apply the technical aspect to try and determine “where” it could reverse. There are many of different technical indicators-patterns and methods of figuring out the “where” the reversal may hit, but we like to keep it simple.
2.) Where are the important support/resistance areas as we approach the turn date-and see if they hold the trend down/up
SENTIMENT: Woody Dorsey has a proprietary sentiment database which tracks how traders are “Feeling” about the current trend in place. Traders get most bearish right before an important low is made-or most bullish right before an important top is being made. Being able to track and monitor how other traders are “feeling” is like playing Texas Holdem and being able to look at your competitions cards. I have yet to see an important top made when investor sentiment was bearish-and I have never seen an important low made with investor sentiment was bullish.
Using Time-Technicals and sentiment has been one of the best trading tools I have ever used. There are some important turn dates approaching. Click here to get the next one