TECL Update (3x long Technology)

I looked at TECL (as it is an equity long position at about 2/3rds a full size position) yesterday and determined that draw-down was likely, but it would not be worth it to me to try to trade around it, I'd rather just be patient for what I view as a short period and let TECL for 1, act as a hedge against the majority of core short positions in case there are any surprises and 2 leave it in place in case there are any upside surprises (pretty much the same reason from 2 different perspectives, both sub-intermediate trends as the primary is fully bearish for the market).


Yesterday in talking about TECL I told a member that, "Yes, we have been doing a lot of trading around positions, but I prefer to trade trends and for the most part, unless the trend changes character, you just stick it out and that means not trading around every pullback or correction you see coming, that's how you miss some big moves. So while we are forced to do it in many instances now as the market is extremely choppy and volatile (the same reason most people don't want to trade tops and bottoms) it is in my opinion a necessary tactic for the current market, but I wouldn't want to habituate members in to thinking this is the best approach in all markets. When we get to a trending market, make life easy on yourself and stick w with the trend, if you want to juice returns around some consolidation trades that's fine, but you don't want to miss the AAPL -45% move because you were trying to trade around a 1% correction.

Again, looking at TECL, I do expect draw down, but again I DO NOT see this being worth the time, transaction costs or effort to trade around a correction, I'd rather just show patience and let it be, that's my take, but I have a high tolerance for risk as long as I feel there are strong, objective reasons to be in the position.

 TECL 2 min intraday with a negative divergence so yes I think a pullback (draw-down ) is likely very short term.

 However at the 3 min chart there is no negative divergence, in fact the opposite, meaning that the negative on the 2 min above isn't even strong enough to move to the 3 min chart, thus it's not much of a concern in smart money's view, it's not much of a concern in my view.

TECL 5 min is leading positive, this is a more important chart/signal and I'd rather trade with the highest probabilities, speaking of which...

This is the 15 min chart, a clean and clear 15 min leading positive divergence and it is confirmed by the 15 min XLK (Tech Sector) below.

15 min XLK.

You don't have to be a busy body all of the time, in fact for a lot of traders that's one of their weakest points, they're always looking for some action, looking to "MAKE SOMETHING HAPPEN".

Our best trades can't be forced, they come on their own, we don't "MAKE" things happen, we identify things that are in the making or are happening.