The Trader Harbor
  • Business
  • Politics
  • World News
  • Stocks
  • Business
  • Politics
  • World News
  • Stocks

The Trader Harbor

Stocks

Stash that Flash Right in the Trash

by admin February 15, 2025
February 15, 2025
Stash that Flash Right in the Trash

The news cycle is in high gear lately, leading to some extra volatility. Traders reacting to the news are getting whipsawed, while chartists remain focused on what really matters. Price. Price isn’t everything, it’s the only thing. News, rumors, fundamentals, the Fed, government policy and everything else are reflected in price. And, perhaps more importantly, it is easier to follow price than to distill the news. 

As chartists, it is not our job to interpret news events or fundamentals. Our job is to set biases aside and focus on price action. We need to answer three questions in a matter-of-fact manner. What is the long-term trend? Is the ETF/stock showing relative strength? Are there any bullish patterns in play? We want to be long when the answer to all three is yes.

TrendInvestorPro specializes in unbiased analysis that focuses exclusively on price action. Each week we define the big trends, identify the leaders and highlight bullish trading setups. We are currently tracking breakouts from mid January (XLI, KRE, ITA) and leadership in several tech-related ETFs (CIBR, IGV, CLOU, AIQ). Click here to take a trial and gain full access.

So what do we do with the news? Ed Seykota, a legendary trend-follower, advocated a systematic approach to trading. His rules-based focused on riding the trend, setting stop-losses and filing the news. This strategy is summed up in his classic Whipsaw Song, which includes the lines:

What do we do when we get a hot news flash?

We stash that flash right in the trash.

Do yourself a favor and stash that flash right in the trash!

Here is a recent “matter-of-fact” example from our ETF Report. SPY is in a long-term uptrend as a bullish cup-with-handle pattern takes shape. First, SPY is trading near a new high and well above the rising 200-day SMA. Second, the middle window shows the SPY/IWM ratio breaking out in mid December and again in February. This ratio rises when SPY (large-caps) outperforms IWM (small-caps).

SPY is in a long-term uptrend and showing relative strength. This leaves us with the third question. Is there a bullish pattern or trading setup on the price chart? SPY corrected from mid December to mid January and broke out on January 21st. At the time, a falling wedge (pink lines) formed and this bullish breakout featured in our report/video that week. New patterns emerge as bars are added and I now see a cup-with-handle, which is a bullish continuation pattern (blue lines). Rim resistance is set at 610 and a breakout here would confirm the pattern.

For subscribers to TrendInvestorPro, this report continues with a video covering the cup-with-handle pattern in detail. We discuss the rationale behind the pattern, a confirmation level, the price target and the re-evaluation level. Click here to take a trial and gain full access.

 ///////////////////////

0
FacebookTwitterGoogle +Pinterest
previous post
Master Multiple Time Frame Analysis With This Simple Method
next post
Retail sales slumped 0.9% in January, down much more than expected

Related Posts

Automate Your Scans with Ease! Sample Scan Library...

May 24, 2025

Is the S&P 500 Forming a Bear Flag...

May 9, 2024

Run Your Stock Portfolio Like a Pro Sports...

May 31, 2025

Prepare NOW For A Potentially Huge Storm Ahead

June 17, 2024

Week Ahead: NIFTY Set To Open Lower; Relative...

April 6, 2025

Market Signals Align – Is a Bigger Move...

July 3, 2025

It all Started with a Big Bang!

September 3, 2024

S&P 500 Makes a New All-Time High By...

May 2, 2024

SCTR Report: Unlocking TSLA’s Potential—What Every Investor Needs...

October 25, 2024

Top 5 Stocks in “Go” Trends

May 12, 2024

    Stay updated with the latest news, exclusive offers, and special promotions. Sign up now and be the first to know! As a member, you'll receive curated content, insider tips, and invitations to exclusive events. Don't miss out on being part of something special.


    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Latest

    • The Real Drivers of This Market: AI, Semis & Robotics

      July 21, 2025
    • What Musk’s fracture with Trump means for GOP’s future: ‘Beating heart of the Republican Party’

      July 21, 2025
    • Trump’s housing chief rips Powell for blowing millions on Fed facelift during housing crisis he perpetuates

      July 21, 2025
    • Trump celebrates 6 months back in office: US ‘totally revived’ after being ‘DEAD’ under Biden

      July 21, 2025
    • Biden admin spent hefty sum of US tax dollars to upgrade embassy swimming pools in Iraq, Russia

      July 21, 2025
    • Trump heads to Scotland, continues ironing out trade deals after notching six months back in office

      July 21, 2025

    Categories

    • Business (1,299)
    • Politics (4,040)
    • Stocks (1,535)
    • Uncategorized (45)
    • World News (1,292)
    • About us
    • Contact us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: TheTraderHarbor, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2025 thetraderharbor.com | All Rights Reserved