Now that the US Presidential election is behind us, it is a good time to review our approach ahead of the event.
Most importantly, here is what we did NOT do:
– We did not try to make a prediction about who would win
– We did not try to predict how the market would respond to any outcome
– We did not identify “groups or individual stocks” which would outperform or under perform.
What we DID DO was:
– Reduce exposure ahead of a well know event which was likely to bring volatility (we sold 1/2 of our one open swing trading position $AKS and locked in a gain of $0.32 on those shares)
– We listened to the message of the market in regards to the stock setups we were in and observing. When $AKS gapped higher, we sold 1/2 of the balance with a gain of $1.12/ share, that is 18.7%. We have raised our stop again on the balance.
– We took two new positions based on how the stocks were trading, NOT based on anything other than PRICE ACTION! Those new stocks $AXP and $TMUS have already proven to be profitable as we took 1/3 of the shares off with a profit. The balance of those two holdings are protected with stops well below where they are currently trading.
Alphatrends has ALWAYS been based on, and will continue to be based on PRICE ACTION for one simple reason!