Trade number 100 for the Daily Battle Plan since it was launched in October 2008 is now in the books and it was a very good one. This makes 80 winning trades out of the 100 trades which triggered in the Model Portfolio and is in line with the historical simulated performance since we first introduced the TPS Strategy.
This trade will be the final trade for the Daily Battle Plan in the current form. I wanted to get to the 100th trade before expanding the Daily Battle Plan to include deeper daily analysis, more ETF set-ups, equity set-ups, and special situation trades as they occur. Look for this new expanded rollout next week.
The market today is slightly oversold and there is further pressure on prices in early futures trading as the Fed’s announcement yesterday caught many by surprise. The wording was strong and it pinpoints the increased likelihood of further downward economic movement. The price behavior remains in line with bear market behavior. Each of the buying phases since early August have been met with heavy selling and yesterday was a continuation of this behavior.
After spending a week in Europe there’s one thing that’s clear. There’s strong momentum for change in the governments of many countries and the change is not pro-growth. In fact, it doesn’t take a PhD in Economics to see that Germany will not play the role of the family member who keeps bailing out the drunken family member. The people won’t stand for it and unless Greece and some of the other countries pull a rabbit out of their hats, Germany will begin moving toward a protectionist state whereby anyone relying upon selling to them and dealing with them will be placed at a serious disadvantage. This is a major step toward other countries doing the same and further slowing world growth.
The opportunities in the U.S. lie right now are on the short side and also in buying extreme pullbacks in very oversold blue chip stocks at the right time. As we move forward, we’ll initially be focusing on making our money in these two areas, plus some options until the bull market returns (and eventually it will return!).
Look for the new expanded Daily Battle Plan beginning next week.
The above is from Larry Connors’ Daily Battle Plan.
To learn more about the Daily Battle Plan – including access to Larry’s daily ETF trading signals, click here for more information.
And for more on ETF trading, be sure to visit us here to check out the book that Stocks, Futures and Options (SFO) Magazine called one of the best trading books of 2009: High Probability ETF Trading: 7 Professional Strategies to Improve Your ETF Trading.
David Penn is Editor in Chief of TradingMarkets.com