As we close out the first week of February, I'm writing to illustrate the
types of great opportunities waiting for all of us. All the trades we share
are based on our Momentum Reversal Method (MRM)
trading system. There are two key components of this trading strategy; A. identifying
recent price rotation, or B. identifying price resumption of existing momentum.
Both examples, today, will focus on two unique examples of the Momentum Reversal
Method and two unique setups. Today's examples are XRT and AIQ, setups that
we believe will result in tremendous opportunities for traders over the next
2-3 weeks.
XRT, the SPDR S&P Retail ETF, is setting up perfectly for a Momentum Reversal
Method BUY trigger. Historical trend has been established as Bullish and we
are seeing clear rotational channels with defined support and resistance. We
would initiate a BUY signal for XRT at (or near) $43.20 with a stop at $41.10.
Our projected targets would be $45.00 & $48.25. We expect XRT to breakout
to the upside relatively quickly (possibly lasting less than a week total)
and we expect this is a great opportunity for a quick 10%+ BUY trade.
The unique aspect of this Momentum Reversal Method setup is the trending channel
and price rotation. This established trend channel provides conformation that
the current momentum is bullish and that this trade, near the lower channel,
is a low risk entry with a high likelihood of success. Our targets are reasonably
located within the existing range. All we need to do is wait for the breach
of the current downward price trend and we will be watching this rally.
AIQ, Alliance Healthcare Services Inc, has been on our radar for about two
months. Obviously, I don't want to chase it for a buy trade. Our MRM method
requires that we wait for the market price to show us the proper setup. In
this case, the price reversal off the bottom was a good move, but did not meet
our requirements for trade entry. The current congestion near $9.75 provided
the confirmation we needed to make the call. This type of move, an upward Pennant
formation after establishing a new high is typical of a pending breakout move.
These types of "Momentum Resumption" trades can be explosive in nature and
result in massive short term gains. The breakout, today, shows this symbol
is ready to run and our targets would be $12.50 & $14.50 (20% and 40% gains).
As we've stated before, we will not share our complete Momentum Reversal Method
strategy with readers, but will share select components so that you can see
how powerful this strategy is. Our recent NUGT trade is up over 88% currently
and we are still expecting further gains. We welcome you to investigate the
Momentum Reversal Method trading strategy by visiting ATP.
These two "real signals" are our way of thanking you for your interest in our
trading strategies and articles. The next few weeks should be all that is needed
to see gains with these triggers.
