Springs Once Again and the Bull Market (Once Again)

The Entry Points

The stock market crash calls are still coming in, like from this incompetent scam artist. “We’re only weeks away from a stock market crash.” What a disgusting creature, scaring people just to grow his enormous bank account. Once again Harry, listen up – for the 1000th time, the stock market is not even remotely a bubble. Maybe in 12 years it will be. In the meantime, I and anyone else who only focuses on the bull market, is making money on the long-side, and it’s a great time to be in harmony with the overall trend. Will there be a big or very big stock market selloff? Yes. All bull markets have them – all of them.

Every day all I’m looking to trade is springs (and absorption), on all time-frames. Position trades in springs take much longer to set up, if they even set up at all. All we can do is allow the market to “let us know”. So I observe, observe, observe, and write it all in a notebook. Today was for me, one excellent trade in MRDN, sold pretty well, and the other was a decent trade in CADC, not sold well at all (too early like usual) – fills.

Also discussed strong stocks, love them, my positions in DVAX, IMMU, OSTK, MZOR plus gold – and no positions in these, but discussed – CHFS, CREG, NKTR, SPY, HMNY.

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About traderscott 1146 Articles
Trader Scott has been involved with markets for over twenty years. Initially he was an individual floor trader and member of the Midwest Stock Exchange, which then led to a much better opportunity at the Chicago Board Options Exchange. By his early 30’s, he had become very successful in markets, but a health situation caused him to back away from the grind of being a full time floor trader. During this time away from markets, Scott was completely focused on educating himself about true overall health and natural healing which remains a passion to this day. Scott returned to markets over fifteen years ago where he continues as an independent trader.

7 Comments

  1. Good Morning Scott. Got a charting skill question and one on the video.
    A)Referring to 10:40 on the video. What strategy did you use to get long?

    B) you said that often a sign of strength is a short term top. What’s and how to use the strategy to go long after a pullback followed by sign of strength?

    • A) It’s in this video from 4 weeks ago. And I’d like to see you learn this, I keep talking about the “last low before the blast higher”. That low, in an uptrend, is an outstanding support “shelf”. And virtually no one knows about that one. So I was looking to buy into the gap, and that low is actually the highest probability low of the gap area. The problem is it doesn’t always set up. So that’s why I was averaging in there. I’m pretty proud of this trade. It set another new high today, and I’ve “given it plenty of room” on the way up.

  2. sometimes during accumulation there are multiple SOS(spikes up with good volume). The backup from those SOS maybe be an entry point. If so, do you have a strategy to go long after the pullback from a spike up(SOS)?

    • First off you have to believe in the accum, and the “upside of the accum area”. And you also know that SOSes have meaning down the road, but the time-frame below that one can often be a short-term top. So you want to look to buy into the reaction off of it. And I will tell you Raphael there is no general strategy, except to look for a spring potential to set up. And a few scenarios. If it sets up, buy into the spring, and take your shot. Or if you miss it, then buy into a retest, if there is one. Or if it (spring) doesn’t set up, then look for absorption. And the final one, less preferable in most ways, but good in others, if there is a gap up, clearing out all of the resistance. Then look to buy into the new technical situation. I did that with OSTK. You have to believe in your work. Accumulation and springs and absorption AND my work ethic are my anchors.

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