Hubert Senters here.
Got a question from Michael. Let’s see here.
Do you ever buy a stock that is below the cloud (Daily) chart, lagging line below the cloud, forward cloud is still red , barely turning green, but the Par-Sar is showing a buy signal for several days?
Yeah. I do it from time to time. It’s not my norm because that’s a counter trend trade methodology and I’m more of trend trader you can definitely do that stuff. We’ll look at that in just a second.
Many of these energy companies just shot above their clouds over the last 2 weeks. I am looking at VLO for example. It was around $325 when the PAR-SAR was showing buy momentum, but now the stock is near $56.
Yeah. So we’ll look into that.
This would be an exception buying early based on your training. I know this concept is trying to catch a bottom. What do you think? Thanks for your time.
I like it Michael. It’s just that it’s not easy for most people to do. I would consider that a counter trend methodology. So if we look at Valero. I’m going to do it on powerplay.
I would call this strategy Sneak In Early. Here’s what Michael is talking about. The parabolic SAR here was green for several bars. Now, it’s trending down here so that’s fine.
So I would line these up and you want two or three of these to line up at the same time. You have a buy signal here on the parabolic SAR. Here you have the ADX is trending but the bear is in control.
The minimum I would wait would be right here like on this day right here when it went back to the cloud. It’s just how the price action settled in.
This would be in a really aggressive move in my opinion if you went long here on this bar. I would either want to close above the turning or the standard line headed towards the cloud and usually I want ahead I want to be the standard line headed towards the cloud.
It just so happened that yeah, three down days and them it jumped up above the cloud so this one the ADX is trending, the parabolic SAR is a buy and you’re above the cloud so it’s a little bit signal for me.
But there’s nothing wrong nibbling on these lows when you have the parabolic same way up in here when you have early sell signals up in here.
It would still a buy but you had early sell signals in this thing so it isn’t early way to sneak into the trade. There’s nothing wrong with it. For me, I’ll just wait until the trend is kind of in sink before I jump in it wise below the cloud.
But I happen known from time to time to do a little counter trend trading but for the most part I would say I spend 80 percent trend trading and about 20 percent counter trend trading.
Now, talking about trend trading I’m going to be doing a special live webinar tomorrow at noon on ”The Best FREE Indicator in the World” My Secret Weapon for Finding Better Trades.
I’m going to be doing a live webinar and scanning the markets live. All of the futures market and all of the stocks in S&P 500 tomorrow at noon. I will HYPERLINK you to the registration page.
Good luck. Hope it helps. See you on the next one.
Hubert.
