Category Navigator™ Signals for Swing Traders

With the volatility this morning, we lowered our sell stop on yesterday’s long position to 3933 to allow the market to react to the Fed Chairman’s speech. The new stop is a few points below yesterday’s midpoint at 3936.50, which should hold for the long swing signal if the rally has any legs.

In addition to the midpoint, we will monitor the 5-Day line at 3960.50, which becomes our new stop in a whipsaw that stays higher than our stop.

We will monitor the situation live, so be alert for signals today.

Our sell stops triggered a nice profit at 436.50 on what looks like a look above and fail per Balance Rules. Trick and company tried a fake-out at the open, but the markets have been in a non-stop Gamma sell spiral since.

I am out for a few hours but will keep checking in for more opportunities. If we have to return to the bottom of the range, it is 4275. More negatively, the failure of this rally to follow through above the daily mean is a bad omen.

As always, I will keep an open mind. Even with fear indicators at correction highs, they are not at panic levels, which may be what is required to take us any higher.

A.F. Thornton

SPY stops are now 434.50, Emini stops are now 4245.25.

This morning, the Founders Group took a 50% long position at 433.25 on the SPY for Swing Trade Accounts. We used an S&P 500 Emini Futures at 4326.50 for leveraged accounts. Stops are set at 431.50 on the SPY and 4315 on the Futures.

We have Navigator Algorithm buy signals, the first of which came at 4267.50 on 2/25. As we would have been holding over the weekend in the middle of the Russia/Ukraine conflict, we waited for an entry on Monday. We took a position Monday, but we were stopped out just above break-even in yesterday’s volatility.

We now have a secondary buy signal this morning, and we will try once again. We will move our stops to break even as soon as possible.

The market is volatile and tricky and not for the faint of heart. From a psychological standpoint, the buys are among the most difficult of my career. That is why we affectionately call it the “puke point.” Stops are our saving grace.

A.F. Thornton

We are out on the S&P 500 Swing Trade at 4320 for a small profit. This morning, the market is increasingly hostile as oil hits $108 per barrel. As we approached the European close a few minutes ago, the market started breaking down – obviously due to the Europeans bailing. Risks are increasing across the board.

The Founders Group has taken a swing buy, long call spread at S&P 500 Futures 4315.25. We are targeting 25% for the position. More on this signal later tonight.