ProMomoDOWN

Planning a trade takes a great deal of work if you want to ensure that you create a high probability opportunity. One of the Tools in my tool belt comes from @daytrend. If you have never seen these tools, you can get them here: http://daytrend.wordpress.com

I have been using his Excel spreadsheet for quite some time, and have found it to be useful in many ways. What I would like to do here is walk you through how I used it last night, noting where I focused my attention.

As you can see in the Excel spreadsheet above, I simply focused on the large column of stocks in the ENER (Energy) section on the ProMomoDOWN tab. By focusing on this industry at this juncture, one has two paths to take:

1) You can review the chart of each entry to find pullback plays, short plays, etc in individual stocks.

2) You can determine that this industry is under pressure and go short an energy ETF.

I chose #2 and went short the XLE. Here is an updated chart of where that stock stands at the moment:

 Sort of explains the large ENER column now huh? Just one way to use the tool so dig in and create your own strategies.

Happy Trading.

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