Easy does it

Can you help me out?

I’d love some feedback from the video below. Just watch the X minute video and then answer the one question poll. Thank you.

At the core of my trading strategy is looking for entry points on securities (stocks or ETFs) that have dropped recently and looked poised for a move back higher.

Or, at least moving sideways.

This is a contrarian approach by its very nature.

Some might call it “catching a falling knife” though I don’t really jump into charts that have the big falling pattern, more of a slow drift downward.

I guess I’m looking for a “deal” rather than riding the momentum higher.

I’m not trying to jump on the bandwagon, hoping that the breakout stock is going to keep moving up & up. In fact, my system pretty much avoids those.

Why?

Because I’m looking for easy moves, where the stock has been trading lower for a while and it could use a simple snap-up to the 21 moving average. An easy move.

Hard moves are one where there are already loads of buyers and they need even more buyers to pile in to keep the momentum going higher. Sure, that happens and it’s exciting to watch whenever it does happen, but, again, it’s not the easy move.

Besides, since I sell OTM Puts, all I really need is for the stock to not drop in a greater-than-expected move. Up a lot, up a little, sideways, even down a little are all probably profitable for my system.

Meaning, most of the time I’m profitable.

And whenever I’m not, I can make adjustments and be patient.

Easy trades made of easy moves.

The White House sends mixed messages, as Bessent suggests the tariff truce could be extended.

Yahoo Finance

Why it matters …

Contrary to this quote, from the article…

““Don’t worry about China, it will all be fine! Highly respected President Xi just had a bad moment,” he wrote on Truth Social.”

The market has had some knee jerks when the tweets/truths appear, but by and large, is ignoring this rhetoric and doing its own thing. Markets tend to do that. I’ve learned the hard way that the markets often don’t do the “rational” thing; they do their own thing. It’s up to me to adjust my plan to fit the market. 

My plan? 

Just keep trading the system.

Comments: Markets are opening mixed and basically flat. Initial earnings reports are overwhelmingly positive thus far early in this earnings season. The almanac shows today to be a historically bull day. Tomorrow is monthly expiration so generally expect some profit taking and a bit of a pullback near the end. Again, just keep trading the system.

A Bravo scan trade at about 1.61% return on risk into next Friday’s expiration.