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Nadeem Walayat Financial Markets Analysiis and Trend Forecasts

Skilled Traders Can Find Profits In Small Caps

Companies / Investing 2018 Oct 23, 2018 - 03:00 PM GMT

By: Chris_Vermeulen

Companies

The recent downside price rotation in the US Equities markets has been a blessing for skilled traders.  The opportunities for profits are setting up all over the markets – you just have to look for them and understand price theory.

The Small Cap ETF, TNA, is setting up a nearly perfect example of a quick in and out trade for a potential profit of 8% to 15% or more.  We understand the fear that many traders may have in the markets right now and we understand the reason why many experienced traders decide to sit on the sidelines while these types of moves play out.  Yet, we believe the opportunities that exist while these volatile market moves are playing out are some of the best setups for experienced and skilled traders.


Typically, volatility may only be only 20% or 30% of the current volatility on average trading days.  In other words, you might be waiting 3x to 4x (or more) longer for the same types of price swings to occur.  If the opportunity presents itself and you have the skills and understanding to dissect the trade, why not take the opportunity for these great, quick moves?

Let’s take a look at the TNA setup

This Monthly TNA chart illustrates the Price Channels that our research team has suggested present the opportunities for this LONG trade setup.  Our research team believes the primary BLUE price channel is acting as support for the current price near $65~70.  As long as this lower price channel holds, then the potential for an upside price reversal towards $78~80 is rather strong.  The MAGENTA target level is price resistance from 2013~2015 and would be an immediate price target for any relief rally from these lows.  The Breakdown Zone is where we want to alert our followers to be cautious.  If the price does not rally and falls below the Breakdown Zone, this trade is invalid.

This TNA Daily chart more clearly illustrates the trade setup that is currently setting up.  The relief rally on Tuesday, October 15, rallied to near $74 from lows near $65.  This type of price rotation establishes a price range and shows us what is capable if the price were to enter a rally mode.  Again, the MAGENTA level is our immediate price target for any new long trades near these lows.  Our opinion is that any new long entries below $70 are sufficient for most skilled traders and, of course, waiting for deeper price entries could be very advantageous.

Don’t get greedy with this one just yet.  We still believe the price will rotate lower after reaching near the target zone and form a major price bottom near November 8~12.  Think of this as a scalping trade.  Once you have entered your long position, any price level above $75 is sufficient to call this one a “solid winner”.

We continue to deliver superior results to our subscribers and members.  We hope you are enjoying our free research articles and are able to gain insight and understanding of our work, research, passions for the markets and willingness to share our knowledge.  If you find our work helps your trading, then take a minute to really see what we offer our subscribers by visiting www.TheTechnicalTraders.com.  Consider trying our services for a three month period to see how we can help you stay ahead of these moves and find greater profits.  If you want to read more about our detailed market research, please visit www.TheTechnicalTraders.com/FreeResearch/

Chris Vermeulen
www.TheTechnicalTraders.com

Chris Vermeulen has been involved in the markets since 1997 and is the founder of Technical Traders Ltd. He is an internationally recognized technical analyst, trader, and is the author of the book: 7 Steps to Win With Logic

Through years of research, trading and helping individual traders around the world. He learned that many traders have great trading ideas, but they lack one thing, they struggle to execute trades in a systematic way for consistent results. Chris helps educate traders with a three-hour video course that can change your trading results for the better.

His mission is to help his clients boost their trading performance while reducing market exposure and portfolio volatility.

He is a regular speaker on HoweStreet.com, and the FinancialSurvivorNetwork radio shows. Chris was also featured on the cover of AmalgaTrader Magazine, and contributes articles to several leading financial hubs like MarketOracle.co.uk

Disclaimer: Nothing in this report should be construed as a solicitation to buy or sell any securities mentioned. Technical Traders Ltd., its owners and the author of this report are not registered broker-dealers or financial advisors. Before investing in any securities, you should consult with your financial advisor and a registered broker-dealer. Never make an investment based solely on what you read in an online or printed report, including this report, especially if the investment involves a small, thinly-traded company that isn’t well known. Technical Traders Ltd. and the author of this report has been paid by Cardiff Energy Corp. In addition, the author owns shares of Cardiff Energy Corp. and would also benefit from volume and price appreciation of its stock. The information provided here within should not be construed as a financial analysis but rather as an advertisement. The author’s views and opinions regarding the companies featured in reports are his own views and are based on information that he has researched independently and has received, which the author assumes to be reliable. Technical Traders Ltd. and the author of this report do not guarantee the accuracy, completeness, or usefulness of any content of this report, nor its fitness for any particular purpose. Lastly, the author does not guarantee that any of the companies mentioned in the reports will perform as expected, and any comparisons made to other companies may not be valid or come into effect.

Chris Vermeulen Archive

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