Strategic Stock Trade
SST Email For 2/14/2019:
Stocks continued their ramp higher on Wednesday, albeit on light volume.
The SPY traded 65 million shares in its 3rd lowest volume of 2019.
The SST Numbers have not been oversold since 12/24/2018. This is one of the longest stretches of not being oversold on the daily time frame in a long time.
As I have said previously, within a bear market Trend, you have some of the most violent bounces to the upside. This is no different.
The VIX continues red on the Weekly time frame for the 8th consecutive trading week. I have gone back as far as my computer allows and we have not seen the weekly VIX red for 8 weeks in a row going back to 2009.
The VIX is extremely oversold on the weekly time frame. Something has to give. It cannot stay this extreme much longer.
Absolutely do not press the long side in this market unless you want to have your head handed to you. The path of least resistance is down.
Finally, for some perspective, the S&P traded at its -4 ATR on the weekly time frame on 12/28/2018. Since then it has skyrocketed to its +1 ATR. This is quite normal. The bounces are vicious within a Bearish Trend as I have said before. Lower Highs are bearish.
On a side note, I just want to reiterate that I nearly Always average into positions because I know that I do not have the concession on where the ideal entry point should be. That is why I always have a starter position then add from there when necessary.
In order to get size, you have to be wrong by definition in the short-term.
Turning to the SST NH / NL Index Charts: the monthly closed with a +1,080, Quarterly = 618, Yearly = 107, and Weekly = 406.
The Weekly chart clearly showing lower highs.
The SST Daily Index Numbers Closed Trading As Follows:
NAZ = 80.24
DJIA = 70.91
IWM = 92.98
S&P = 81.55