2013 Outlook
After an extended holiday break, the Elite Trading team is back and ready for some action. And, after today, I think it is safe to say that action is exactly what we started the year with. I'm sure everyone has had enough talk about the Fiscal Cliff deal, and I can say that I'm glad it is over and done with. That being said, heading in to the New Year I am very bullish, mainly due to 3 key factors:
1) The housing market has seemed to find it's bottom. Existing home sales are up 18% year-over-year from November 2011 to November 2012
2) The financial institutions have rebounded after a tough Q2 last year, and are leading the market as we speak.
3) Lastly, with the global economies marring Q3 last year - we finally have stability and are not overly worried on the strength of the Euro. China, while still lagging, is not pulled down the US markets at all.
At this point in time it is imperative to find the stocks that are leading the market and their relative sectors, and trade them extremely well. The high beta stocks have been everyone's favorites, but have lacked lots of mustard these last few months. Keep an eye on them, but DO NOT fall in love with them. The banks and homebuilders have been the far and away leaders, so pick the strongest within each sector. It seems very easy and basic, but it all falls back on 3 basic principles: patience, persistence, and discipline.
That being said, today's action was great for the bullish markets and future prices. However, it was not very tradeable. The biggest thing to focus on during days like today is to not chase prices, let them come to you. Markets don't go straight up, they WILL RETRACE. Find a price target based on a successful trading plan, and stick to it.
All in all, I hope everyone has a great 2013 and remains dedicated to being a better trader every day. The market can be your best friend on Monday and your worst enemy on Wednesday, that I have learned the hard way. If I can shed any ounce of help on anyone out there, my best advice is to remain VERY VERY disciplined. Only trade price and ALWAYS trust your stops. Goodluck this year!
Stay passionate and persistent,
The ET Team
1) The housing market has seemed to find it's bottom. Existing home sales are up 18% year-over-year from November 2011 to November 2012
2) The financial institutions have rebounded after a tough Q2 last year, and are leading the market as we speak.
3) Lastly, with the global economies marring Q3 last year - we finally have stability and are not overly worried on the strength of the Euro. China, while still lagging, is not pulled down the US markets at all.
At this point in time it is imperative to find the stocks that are leading the market and their relative sectors, and trade them extremely well. The high beta stocks have been everyone's favorites, but have lacked lots of mustard these last few months. Keep an eye on them, but DO NOT fall in love with them. The banks and homebuilders have been the far and away leaders, so pick the strongest within each sector. It seems very easy and basic, but it all falls back on 3 basic principles: patience, persistence, and discipline.
That being said, today's action was great for the bullish markets and future prices. However, it was not very tradeable. The biggest thing to focus on during days like today is to not chase prices, let them come to you. Markets don't go straight up, they WILL RETRACE. Find a price target based on a successful trading plan, and stick to it.
All in all, I hope everyone has a great 2013 and remains dedicated to being a better trader every day. The market can be your best friend on Monday and your worst enemy on Wednesday, that I have learned the hard way. If I can shed any ounce of help on anyone out there, my best advice is to remain VERY VERY disciplined. Only trade price and ALWAYS trust your stops. Goodluck this year!
Stay passionate and persistent,
The ET Team