The power of trading trends

I caught this move all because I knew what to look for...

Hey There! Happy Wednesday, everybody! I am still vacationing but I'm getting more back into the flow of the markets. As you know, I've got a class coming up later this week on Bollinger Bands! This morning, I was doing a class with some of my students, and I spotted something interesting in a chart on Johnson + Johnson. If you didn't hear, J+J got some hard news yesterday when the U.S. Government announced it was shutting down the vaccine due to some safety concerns in cases. Of course, that didn't do great things for the stock at the start of the day, and you can see it begin to plummet on this five-minute chart. But while I was looking at this in class this morning, I spotted a pattern in the Bollinger Bands that showed me that we had probably reached the bottom of the selloff. I'll talk a bunch more about how I saw that pattern on Thursday night in my free class. Join me here! Because I saw that pattern, I knew that the market was probably going to be heating up, and I turned out to be right. JNJ climbed for the rest of the day! But the cool thing about the stock market is that nothing happens in a vacuum. The news about JNJ had a similar effect on travel stocks, and you can imagine why: people worrying that travel may slow down are going to take their money OUT of travel stocks. We saw the same sort of pattern materialize: Just using Delta Air Lines (DAL) as an example, we saw a big selloff at the start of the day, and then a very quick climb from the bottom. It's a good reminder that in the market, everything is temporary. Any reaction you think might affect a stock for months or weeks may only last for hours or minutes. Even a company like Boeing (BA), as bad as their 2020 was, has seen slow, steady gains through much of 2021. But on a shorter timeline, like we saw yesterday with JNJ, DAL, and others, a short term trend can actually set us up for really awesome immediate plays. On travel stocks, we saw a lot of bullish entries trigger because of that brief pullback. It was a great time to trade those stocks! So  I guess I'm saying, never overreact to a trend that changes, because trend changes are often our best opportunity to play the market. Join me on Thursday and I'll explain even more! Chat Soon, Markay Leveraged trading in foreign currency or off-exchange products on margin carries significant risk and may not be suitable for all investors. We advise you to carefully consider whether trading is appropriate for you based on your personal circumstances. You may lose more than you invest. We recommend that you seek independent advice and ensure you fully understand the risks involved before trading. The information on this website is intended as educational in nature and we do not recommend that you buy or sell any specific financial instrument. Daily Profit Publishing , 1800 Hughes Landing Blvd. Ste. 200, The Woodlands, TX 77380, United States Update your subscription — Unsubscribe