24 Jul Waiting to Pounce With a Moving Average System
Waiting to Pounce With a Moving Average System
July 24, 2022
There are two big things I want to accomplish with this week’s Newsletters.
One, I want to be ready for some big winning trades coming soon.
Two, I want people to email me in the upcoming months and tell me about the great winning trades they got.
As we’ve said, right now is a great opportunity for stock traders. For Forex, it’s about the same. This year in Fx is good but not once-in-a-decade. For Futures, I don’t see any big, special setups.
But stocks and their upward biases are completely different. Stock traders get a special window every ten years or so to make their careers. And this is one of those times.
In our last email, we talked about the simple system that can be used to catch the upcoming moves. This system captured large wins back in the last real Bear Market in 2008.
But what about the fake Bear Market in 2020? Did it work then?
Here’s the QQQ ETF after the big collapse in February 2020:
If we didn’t panic when price dropped far below our 30-period SMA and we stuck to our system, we would have potentially netted a 54.7% gain.
And AAPL right after the fake bear market in April 2020 would have produced a 60% win:
And Tesla (TSLA) immediately after the pandemic drop below the SMA would have potentially brought in a 290% winner:
So, what do we do now?
Nothing special. We could trade any of the stocks we’ve talked about. No further research necessary. If we watch and take action on AAPL, AMZN, QQQ, TSLA, or NFLX, chances are we’ll be just fine.
Or we could take a portion of our money and place it on something like Peloton (PTON). In the fake 2020 bear market, PTON was about a 200% winner with this system. It’s fallen like a rock since. What might happen if it gathers momentum again?
Or we could take a small amount of money and try meme-stock legend AMC. Our system would have caught the meme stock momentum in 2021 for a 500% win, and AMC is under the SMA once again:
The most important thing is that we don’t miss out. Something good is going to come out of our current Bear Market.
Hopefully, we’ll be ready for it.
Talk to you soon.
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It should not be assumed that the methods, techniques, or indicators presented in these products will be profitable or that they will not result in losses. Past results are not necessarily indicative of future results. Examples presented on these sites are for educational purposes only. These set-ups are not solicitations of any order to buy or sell. The authors, the publisher, and all affiliates assume no responsibility for your trading results. There is a high degree of risk in trading.
HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE CERTAIN INHERENT LIMITATIONS. UNLIKE AN ACTUAL PERFORMANCE RECORD, SIMULATED RESULTS DO NOT REPRESENT ACTUAL TRADING. ALSO, SINCE THE TRADES HAVE NOT ACTUALLY BEEN EXECUTED, THE RESULTS MAY HAVE UNDER- OR OVER-COMPENSATED FOR THE IMPACT, IF ANY, OF CERTAIN MARKET FACTORS, SUCH AS LACK OF LIQUIDITY. SIMULATED TRADING PROGRAMS IN GENERAL ARE ALSO SUBJECT TO THE FACT THAT THEY ARE DESIGNED WITH THE BENEFIT OF HINDSIGHT. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFITS OR LOSSES SIMILAR TO THOSE SHOWN.