Become A Better Trader By Friday – Three Things To Know

(Do this if your serious about trading and improving your results) [image] The S&P 500 just finished an historic first month of gains. Maybe your results were better than you expected, or maybe your results left you feeling in the dust. Professional traders always work to hone their skills regardless. Here are some ways you can too. Know The Way Have an idea as to where the broad market can go over a designated time frame. At the beginning of last month, I posted my projection of January: [image] Here’s how it finished: [image] Having this framework helped me make money. Understanding news events, trends, and cycles are a few keys I used. Applying these components and others in your own way might help you improve your trading success. Keep in mind that markets can go higher than you think, lower than you think, and sideways for longer than you think. Just because a market is oversold, overbought, or over-the-hill doesn’t mean it can’t go into overdrive. Know The Main Drivers Study the main eleven sectors and understand which ones are strong and which ones are weak. The evidence is in! The Tech sector took control of January followed by Consumer Discretionary and Communication Services. Health Care, Consumer Staples, and Utilities all lagged. [image] Could it be that the economic news is becoming less bad and we’re starting the climb out of the recession? (Yes, I’m on record saying that in the months ahead we’ll get notice that “the US has been in a recession”). Or maybe the Tech sector and its buddies are just having a dead cat bounce. Either or both are possible. According to Bespoke, just ten stocks in the top three sectors contributed 49.49% of the 230 S&P January points! I bet you can guess at least five in five seconds, but just in case, here they are: AAPL, AMZN, TSLA, NVDA, META, GOOG, GOOGL, MSFT, DIS, and V. Looking at Health Care, Consumer Staples, and Utilities, could they be the winners of February, or will their carnage get worse? The point is this: Understanding keys about sectors helps traders make cents in stocks, and that’s the next topic. Know The Players Start each day, week, or month with a stock watch list. Last year Eli Lilly (LLY) was one of my favorite stocks. I’m watching for a pullback to time my next entry because I like the fundamentals. It might not come in 2023, after all a lot of insiders took profit last quarter. But I’m still watching. RIG (Transocean Limited) in the Energy sector, there’s a dog! That’s an ugly 10 year chart if I ever saw one. Oh by the way, insiders massively bought this last year, and check out the volume on the bottom right. If you’re serious about trading and improving your results, look at a daily chart to get a different picture. Is there an opportunity? Maybe, maybe not. But somebody is buying. [image] Here’s what I find interesting: Although just ten mega cap stocks in just three sectors have taken control since the first of the year, a large number of smaller cap stocks contributed more than their fair share to the January plunder. You can see this in the Cumulative AD Line (light blue) overpowering the S&P dark blue line. [image] Compare what’s happening now (11/22 – 1/23) to what happened 7/22-9/22. How are they the same, how are they different, how can you use this information to become a better trader? Think and win, Celeste Lindman Ask The Pros P.S. For more in-depth trading insights, [join my FREE Telegram channel.]( RISK DISCLAIMER There is a very high degree of risk involved in trading. Ask The Pros and all individuals affiliated with this site assume no responsibility for your trading results. The indicators, strategies, columns, and all other features are for educational purposes only and should not be construed as advice. Information for futures trading observations are obtained from sources believed to be reliable, but we do not warrant its completeness or accuracy, or warrant any results from the use of the information. Your use of the trading observations is entirely at your own risk and it is your sole responsibility to evaluate the accuracy, completeness and usefulness of the information. You must assess the risk of any trade with your broker and make your own independent decisions regarding any securities mentioned herein. [Unsubscribe]( DTI Trader 1555 University Blvd S Mobile, Alabama 36609 United States (251) 652-1555