Lecture Notes

Introduction

• Time: 3:00 PM (Colorado)
• Focus: Market analysis and questions from audience via email
• FOMO (Fear Of Missing Out) is prevalent in the market

Market Analysis

V-Bottoms

• V-Bottoms: Rare market movements that defy expectations
• Initial skepticism about trusting above the 5-day moving average
• Key: Use "potential" when discussing market levels

Moving Averages

• 5-Day Moving Average: Anchor for market confidence
• 50 and 200-Day Moving Averages: Indicators of longer-term trends
  • Current status: Rising

Trading Strategy

• Cautious bullish stance
• Trading with smaller share sizes due to volatility
• Risk management is crucial

Market Dynamics

Rally Dynamics

• Rally is undeniable, but skepticism remains
• Importance of adapting to market realities
• Avoiding FOMO-driven decisions

Specific Market Observations

• Russell 2000: Impact of interest rate expectations
• Small-cap stocks not benefiting as expected due to rising interest rates

Technical Patterns

• Potential head and shoulders patterns in equities
• Importance of respecting moving averages as support/resistance

Trading Techniques

Pre-market Trading

• Pre-market trading offers opportunities, though liquidity is a concern
• Consider personal circumstances before engaging in pre-market trading

Day Trading Environment

• Use of session VWAPs and shorter time frames during volatile sessions
• Example of 15-second scalping during extreme volatility

VWAP and Anchoring

• Anchored VWAP: Tool for identifying potential support/resistance
• Use VWAP for guiding trades, but avoid over-reliance

Handling IPOs

• Increased IPO activity as a sign of market confidence
• Focus on IPOs with reputable underwriters

Risk Management and FOMO

• Importance of sticking to risk management plans
• Balancing long-term guidance with short-term profit-taking

Q & A Highlights

• Questions on Pre-Market Trades: Emphasis on personal trading strategy
• Day Trade Environment: Observation of daily VWAP and historical volatility
• VWAP Usage: Clarification on anchored VWAPs and traditional horizontal levels

Conclusion

• Encouragement for traders to develop personal trading strategies
• Emphasis on continual learning and adaptation