• 14 mins The Top Tech Stocks Of The Year
  • 15 hours America’s Workforce Elderly Workforce To Double By 2028
  • 21 hours Toyota Tests Solar-Powered Prius
  • 2 days Why The Gold Rally Flatlined
  • 2 days The Uranium Sector Can’t Catch A Break
  • 3 days Upcoming Fed Meeting Has Investors On Edge
  • 3 days Global Gold Sector Outlines Responsible Mining Principles
  • 4 days China’s Giant Vampire Fund Loses $120B
  • 4 days McDonalds To Roll Out Robot Drive-Thru Clerks
  • 4 days Savvy Investors Are Betting Big On This Little Data Company
  • 5 days How The Government Is Wasting Tax Money This Year
  • 5 days Supply Concerns Halt Expansion On Tianqi Lithium Plant
  • 5 days The World’s Biggest IPO Is Almost Here
  • 6 days The Relatively Of Money And Happiness
  • 6 days Wall Street Unfazed By Recession Fears
  • 6 days SoftBank Urges WeWork To Pause IPO Plans
  • 7 days Anti-Aging Market To Hit $55 Billion
  • 7 days JPM, Morgan Stanley Take Advisory Roles In Aramco IPO
  • 7 days Are Bonds In A Bubble?
  • 8 days The Unknown Media Giant Taking The World By Storm
Billionaires Are Pushing Art To New Limits

Billionaires Are Pushing Art To New Limits

Welcome to Art Basel: The…

The Problem With Modern Monetary Theory

The Problem With Modern Monetary Theory

Modern monetary theory has been…

Zombie Foreclosures On The Rise In The U.S.

Zombie Foreclosures On The Rise In The U.S.

During the quarter there were…

John Winston

John Winston

John Winston is the technical commodity trader analyst. He provides detailed technical analysis for popular commodities like gold, silver, copper, oil, and natural gas.

Contact Author

Chris Vermeulen

Chris Vermeulen

Chris Vermeulen, founder of AlgoTrades Systems., is an internationally recognized market technical analyst and trader. Involved in the markets since 1997.

Contact Author

  1. Home
  2. Markets
  3. Other

Retail Prices at wholesale Prices - Next Hot Sector

As we close out the first week of February, I'm writing to illustrate the types of great opportunities waiting for all of us. All the trades we share are based on our Momentum Reversal Method (MRM) trading system. There are two key components of this trading strategy; A. identifying recent price rotation, or B. identifying price resumption of existing momentum. Both examples, today, will focus on two unique examples of the Momentum Reversal Method and two unique setups. Today's examples are XRT and AIQ, setups that we believe will result in tremendous opportunities for traders over the next 2-3 weeks.

XRT, the SPDR S&P Retail ETF, is setting up perfectly for a Momentum Reversal Method BUY trigger. Historical trend has been established as Bullish and we are seeing clear rotational channels with defined support and resistance. We would initiate a BUY signal for XRT at (or near) $43.20 with a stop at $41.10.  Our projected targets would be $45.00 & $48.25. We expect XRT to breakout to the upside relatively quickly (possibly lasting less than a week total) and we expect this is a great opportunity for a quick 10%+ BUY trade.

XRT Daily Chart

XRT Weekly Chart

The unique aspect of this Momentum Reversal Method setup is the trending channel and price rotation. This established trend channel provides conformation that the current momentum is bullish and that this trade, near the lower channel, is a low risk entry with a high likelihood of success. Our targets are reasonably located within the existing range. All we need to do is wait for the breach of the current downward price trend and we will be watching this rally.

AIQ, Alliance Healthcare Services Inc, has been on our radar for about two months. Obviously, I don't want to chase it for a buy trade. Our MRM method requires that we wait for the market price to show us the proper setup. In this case, the price reversal off the bottom was a good move, but did not meet our requirements for trade entry. The current congestion near $9.75 provided the confirmation we needed to make the call. This type of move, an upward Pennant formation after establishing a new high is typical of a pending breakout move. These types of "Momentum Resumption" trades can be explosive in nature and result in massive short term gains. The breakout, today, shows this symbol is ready to run and our targets would be $12.50 & $14.50 (20% and 40% gains).

AIQ Daily Chart

AIQ Weekly Chart

As we've stated before, we will not share our complete Momentum Reversal Method strategy with readers, but will share select components so that you can see how powerful this strategy is. Our recent NUGT trade is up over 88% currently and we are still expecting further gains. We welcome you to investigate the Momentum Reversal Method trading strategy by visiting ATP.  These two "real signals" are our way of thanking you for your interest in our trading strategies and articles. The next few weeks should be all that is needed to see gains with these triggers.

 

Back to homepage

Leave a comment

Leave a comment