🐺The S&P 500 is officially in the RED!!!

Hey there! My name is Jordan and I write about trading for the WOLF Financial newsletter. If you are looking for more trading tips and tricks I guarantee you’ll enjoy my content on 𝕏, @AceTheKidTA. Thanks for reading!

This service is for general informational and educational purposes only and is not intended to constitute legal, tax, accounting, or investment advice. These are my opinions and observations only. I am not a financial advisor.

The S&P 500 has had its first red week since June down -1.96%. It has gotten most people shaken up and guessing on where the market is going next.

In my opinion, $SPY still has plenty of room down if it wants to go according to my weekly charts.

My weekly 9 EMA sits at $543.23 and my 21 EMA sits at $526.50.

These levels seem far from the downside because the S&P 500 has continuously made new highs.

I think these would be healthy levels to retest.

I am not bearish on the market and am still swinging long some positions but with time.

I may play some puts here and there on weak individual names if we keep getting downside towards these weekly EMAs, but I’m ultimately looking to be a buyer on this dip.

Always Follow The Trend!

In almost every trade I take I will fade the short-term trend for the long-term trend especially when swing trading.

If you are more of a day trader you want to play whatever short-term trend is happening.

But for someone with more of my style, I perform much better waiting for pullbacks on strong trends.

You can see every dip to that 21 EMA was an amazing place to be adding long positions.

Could you have made money on the downside pullbacks?

Absolutely! And if that is your style then you do you.

I just personally take the approach of pinpointing the best spots to buy the dip and fading the short-term trend for the long-term trend.

Trading against the trend is like trying to swim in the ocean against the current.

You could still probably get somewhere, but it will be significantly harder and you will put in way more effort to succeed.

What Stocks Are Best For This?

I like to stick with stocks that are in very strong trends to the upside or downside.

Some stocks are not currently in a trend and are consolidating which can make for a difficult trading environment.

So in my opinion sticking with stocks that are in strong trends on the weekly time frames will help a lot of people.

I hope this helped you guys get a better understanding of why it’s important to always be trading with the trend and giving yourself the best odds at success.

Thanks for reading.

-Jordan

@AceTheKidTA