Q&A by Don Bright
LATE ON THE TRENDS
I have a bad habit of getting into trends too late. I try to keep an eye on stocks with strong correlation to the Standard & Poor’s 500 with no outstanding news on them about earnings and so on. The indicators I mainly use are the S&P 500 and the futures tick chart. I also refer to the duck list frequently and look for at least five of the seven ducks to line up in addition to the other indicators.
I also try to watch for resistance, but I still seem to take a position right before the stock changes direction. What am I doing wrong? —Jordan
I gather you’ve already been to our classes, so let me explain to the readers what a “duck list” is. Basically, a duck list is getting several indicators in the same place at the same time — for example, premium or discount to (futures) fair value intraday, strong stock in a strong group and so on (for immediate directional plays). In addition, be sure the engine of the day is in alignment with your chosen directional entry.