Big picture trading

Whenever the market falls, like it did this week, it’s important to do a ‘Big Picture’ overview.

Getting a big picture view means looking at the market as a whole, to determine where money is flowing in, and where it’s flowing out. Typically, this overview should include the key indexes, along with sectors, currencies, and commodities. Additionally, I like to include some of my favorite ETFs, based on where the strengths and weaknesses are in the market. 

Of course, you can do this chart by chart. For me, I find it quicker and much more helpful to get the Big Picture view using…

The Phoenix Finder Tool.

Check out the screenshot from yesterday:

The Phoenix Finder shows the strength of the trend — particularly how it shifts overtime. The bright green boxes indicate a strong uptrend, and when the boxes drop off, and shift to dashes, that’s the first indication that the trend is losing its strength. A shift to yellow is a warning sign, and a triangle along with red means we have shifted into a downward trend.

As you can see, the key indexes (including SPY, DIA and QQQ) have all shifted in a downward trend, and we’re seeing money flow into the Yen. This is a very typical ‘risk off’ situation, where money is coming out of equities in masse.

But, there are some equities that are bucking this trend.

These are the honey badgers. The stocks that do whatever they want, regardless of what the market’s doing. Now, these are going to be fewer when the market’s breaking to the downside, but they’re still there.

Do You Know How To Find Them?

Based on my grid, I can see that Chewy (CHWY), Teladoc (TDOC), and Livongo Health Inc (LVGO) continue to be strong, even on days where the S&P is down more than 2%. CHWY is one of my favorite stocks this year, as are TDOC and LVGO.

These hot COVID names are lit up on a stormy day!

As we get closer to the election I can almost guarantee we’ll see more volatility in the market, and that can bring about some huge opportunities. I’ll be live trading the two days following the election results, picking out honey badgers with the help of the Phoenix Finder. You can click HERE to join me on November 4th and 5th for the open and close.

1 thought on “Big picture trading”

  1. Hello Madam ji I would love to be guided by you in this New Project. Stay blessed and tuned and Rocking .
    Thanks and Regards

    Reply

Leave a Comment

Up Next...

A Sorely Needed Pullback…

Hey traders! The market is finally pulling back today after what has been a phenomenal run. While pullback days aren’t very enjoyable when you’re long, ideally, you’ve been taking profits on the way up and trimming positions at market extensions. As I was on vacation, I have been flat, minus a small position I entered … Read more

Read More

Top Hot Zone Tickers Today…

Hey Traders! I’m back from vacation and ready to locate some setups. Whenever I come back from a break, I have a regular process I do to identify spots to focus on. It goes something like this… Start with the major indexes (Nasdaq, S&P) and the Magnificent 7 stocks (Apple, Microsoft, Alphabet, Amazon, Nvidia, Meta, … Read more

Read More

Happy 4th of July!

I hope everyone is enjoying their summer so far and looking forward to the shortened week! If you’re here in the United States, I hope your holiday is safe and enjoyable. I will personally be taking some time off this week to spend time with family and enjoy the holidays. I love cooking with my … Read more

Read More

Subscribe Today!

Want my up-to-date analysis, setups, top trading tips, and more? Be a Five Star trader, and join my free newsletter today!

Sign Up Now
all-as-seen-on-logos