Courtesy of David Grandey
(Feel free to ask David about his trading strategy in comments – Ilene)
In this market, the key is to:
Buy the dips, (as long as we are in an uptrend as defined by being above the 50-day and trend channel support) sell the rips (that’s getting the first down) and yes upon doing so over and over and over again and you too can go to the Superbowl!
On Tuesday, Apple opened down 4-5%! Can anyone guess where that took the stock? If you say support then you are correct. Check out the chart below!
Notice where AAPL opened up at and stopped? Need we say more?
If you are one who owned it and allowed your emotions to get the best of you AFTER it already got slammed while the markets were closed Monday (think damage already done) and sold on the open? Well then it took a bite out of you.
If you are one who buys the dips in issues that are in clearly defined uptrends above the 50 day average and at trend channel support and “In The Face Of Fear” like we talk about over and over and over again? Then you took a bite out of it.
AAPL promptly bounced from support Tuesday (327) and then popped Wednesday morning (347) following its earnings report. The OPPORTUNISTIC trader that understands when a leading stock gets slammed to support that it’s a buying opportunity is the trader that got paid.
To learn more, sign up for David’s free newsletter and receive the free report — “How To Outperform 90% Of Wall Street With Just $500 A Week.” David’s also offering PSW readers a Special deal, two months for just $10 a month. – Ilene
