Cycle Trading

[Duma]

I hear what you are saying about trading sub sectors, but here are the two main problems I have hit up against.

1. First there are just so many sub-sectors, I got over whelmed when I started trying to list them and watch them.

2. And then the more important issue, before the big gains are made, how does one pick which sub-sector is going to blossom. It is easy to tell after the fact, but very difficult before the big moves. Everbody shows charts of what you could have done, but nobody tells you why they would have picked that etf/stock.

So what I done is moved to trading a select group of stocks and sectors with my 60min chart. This seems to be working well. I have made some good money of some big stocks like AMZN and BABA and smaller stocks like EMKR. When it looks like they are not going to pan out, I just bail quickly. Perfect execution of letting the winners run and closing out the weak ones.

During the last SPY down turn I put on 3 SPDR sector trades. I quickly got out of 2 of them when they didn't move, but XLV (health) has been my big winner, which I still hold.

As of right now XLB and XLF sectors are setting up for buys.

I also use my 60min chart to time my option trades like I did for MU.