SOXX
As can be seen within the chart above, the price action of SOXX, a leading indicator of what is happening in the technology sector, is not trending (moving upward or downward consistently) on the 4 hour timeframe. It is ranging (moving sideways).
Moreover, my crypto trading experienced revealed to me that when a leading market is moving sideways (like Bitcoin), then the other assets within the sector (such as Altcoins) can continue to rise in accordance to a bullish price action structure.
I have decided, as a result, to go long the following companies within the technology sector because of their bullish price action patterns:
INTC
MU
Learning Point
The extreme importance of tracking the price action of a substantial trading watchlist everyday in order to be able to appreciate the occurrence of great swing trading opportunities.
Next Actions
- Assess INTC and MU on the 1 hour timeframe on a daily basis to see if you can add additional capital to the trades using the 3:2:1 ratio.
- Continue to go through your trading watchlist everyday.
- Continue to watch the daily trading videos produced by veteran traders to continue your accelerated learning process.
RUT
Similar to the price action of SOXX, the broader market (Russell 2000) is currently moving sideways in what appears to be a bullish consolidation.
That said, I have decided to enter into a short trade (which is a low-probability trade because it is not in alignment with RUT, the broader market) concerning Dollar General:
As can be see above, the price action of RUT on the Ichimoku shows that probabilities favour the price action continuing to decline in the short-term. So let’s see how this plays out!
Next Action
- Continue to monitor the price action of RUT everyday.
- Continue to monitor the price action of DG everyday.
