What a wild start to the week… when it comes to Mondays, I don’t look to rush into any trades. Instead, I remain patient and let the dust settle before I decide to make any moves.
On Monday mornings, I’m watching momentum stocks and filtering for some of the hottest stocks out there. However, if you don’t already know, Mondays can be extremely volatile… and today, I want to show you how I avoid being chopped up and forcing trades.
Right now, there are a few momentum names on my radar that can potentially provide me with opportunities to make money.
[Revealed] My Trading Plan For Monday
This morning, we saw general weakness in the market — which I believe was a continuation of Friday’s significant pullback. However, we did see stocks start to claw back on the backs of tech.
Will the market close higher or lower today?
Who really knows.
However, this morning, I’m happy with what I did. I didn’t rush into any trades near the open. For years, I did that and let the excitement of all the flashing lights and pushing buttons lure me into momentum stocks…
Only to manage a few losers the rest of the week, more often than not.
However, that’s not my trading style anymore. I sit back and let stocks digest, before I make any moves in momentum stocks.
For today, I’m being very patient, and around 11 AM ET, I started to scan for stocks to potentially trade. That’s how I’m approaching the trading day, and quite possibly the whole week in this market environment.
My Thoughts On The Market
It looks as if the “buy the dippers” are stepping back in. This week, I expect traders and investors to step back in and buy stocks, by no later than the middle of the week.
If they don’t, well then my thought that the markets are headed for the panic lows might actually become a reality.
As a swing trader, I try not to get too caught up in the overall market but instead focus on what I think will happen this week.
So for this week, obviously today was red to start, but stocks did look stronger heading into the lunch hour.
I suspect a reversal soon since the “buy the dip” has reigned supreme. Whether that’s Tuesday or Wednesday, I’m not sure.
So for swing trades, my goal is to track my favorite names TLRY, OSTK, CHEF, HEAR, SDC, APRN, GRPN, GLUU, GSX, YETI, VERI, ZAGG etc… for dip-buying opportunities.
For the most part, I’ll be looking to see if my favorite patterns show up in these names, and looking for any new potential momentum trading opportunities.
With my afternoon scans, I’ll look for stocks with at least $2M in dollar volume ($ volume), and filter for percentage gainers. Thereafter, I’ll look for the top 10-15 names on my list and at the charts to see if any of my momentum patterns come up.