Archive Category: Wednesday Windfalls Alerts

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Many of the U.S. and global stock indexes are setting the precise pattern we seek to take advantage of: Prior to our entry: Strength on Friday, weakness on Monday. Following our entry: Strength between Monday’s close and Wednesday’s close. That means I had a lot of signals to scan through this morning. See, my TradeStation platform and the algorithm I coded for our Wednesday Windfalls strategy can help me with the preliminary stages of my trade selection routine each week.

Well, our “rally caps” didn’t help us this week. The broader market is up just a bit today, but not enough to make up for yesterday’s slide lower. It seems everyone’s waiting for this afternoon’s update from the Federal Reserve, which is always a crapshoot and nearly impossible to trade on. There’s, of course, a chance that whatever the Fed does and says this afternoon will cause stocks to rally … or make silver rally … or both. But I don’t have a crystal ball, and it’s a coin flip that’s outside the bounds of our tightly defined system.

When I played baseball growing up, we put on our “rally caps” when we needed a few runs to catch up and win the game. I’m not sure why, but that consisted of folding our hats in half so the brim stood vertically, almost like a shark fin. Anyway, today we’ll put on our “rally caps” and see if we can ride a rally in the market and shares of three bullish plays we’re making today. Stocks opened the week by plunging lower. At one point, 20 stocks were trading down for every one stock that was trading up.

As I mentioned on Monday, the broader stock market has been in a sideways consolidation pattern for several days now. The S&P 500 closed down and near its lows on Monday, typical of the “weak Monday” seasonality effect we seek to take advantage of with our Wednesday Windfalls strategy. The bulls took control on Tuesday, pushing the index higher. But today, stocks are heading back down again.