Trading doesn’t mean committing to buying and holding through the market’s longer-term ups or downs.
Instead, if we find a channel – either a bull or bear one – we can trade inside that channel on a short-term basis both on the up and down sides.
Right now, we see a channel set up for the Russell 2000 Index and its futures contract (RTY).
Here’s how the channel could be setting up for short-term bull and bear trades…
Trading Ups and Downs Inside the RTY Channel
Here’s the chart for RTY and how I see trades shaping up inside a downward channel providing near-term buys and sells over the coming days and weeks…
The RTY daily time frame is in a down channel.
The market hit the bottom of the channel and is now pushing bullish towards the top of the channel price point 1,904.20, about +1,315 ticks above the market.
It will be a good idea to turn to the one hour time frame and to look for low prices in the buy zone.
The Bottom Line
There are multiple ways to trade the stock market. We can trade the indexes, both up and down in channels, as well as individual stocks.
Above, we outlined a channel trade. But I’m also looking at plenty of individual stocks.
And I have a new way of picking out individual opportunities… Below, I go through one of our newer strategies, which seeks out “marked stocks.”
These are particular opportunities that I discuss further in my latest on-demand session below…
For more on the markets as well as trading education and trading ideas like this one, look for the next edition of Josh’s Daily Direction in your email inbox each and every trading day.
I’ll be bringing you more of my stock and futures contract trading tutorials as well as some additional trading ideas.
And if you know someone who’d love to make this a part of their daily trading routine, send them over to joshsdailydirection.com to get signed up!
Keep on trading,
P.S. Stock markets may be unsettled, or even bearish. But that doesn’t mean that there aren’t opportunities… All it takes is riding the coattails of a stock after it’s been “marked.”