Prioritizing Precision Entries and Managing Sector Rotations
• Missed early opportunities in energy stocks, where the team hesitated despite confirmation of breakout setups.
• Refinements to the ‘big ass fly’ strategy, emphasizing tighter entry zones and faster profit-taking in high-volatility conditions.
• Increased focus on volume confirmation, requiring alignment with price action to validate trade entries more effectively.
• Discussion on dynamic stop-loss placement, adapting stops in real time based on volatility rather than fixed point systems.
• Shift in sector allocation, moving away from underperforming financials and targeting momentum plays in healthcare and tech.
• Commitment to avoiding overtrading, particularly during midday chop, reinforcing patience until clearer setups form.
Summary
the team analyzed missed opportunities in energy sector breakouts, emphasizing the need to act quickly when setups meet predefined criteria. Ernie stressed refining the ‘big ass fly’ strategy by focusing on tighter entry zones and speeding up profit-taking in high-volatility situations.
The session covered increasing the emphasis on volume confirmation, ensuring that price movement aligns with volume spikes before taking trades. Dynamic stop-loss placement was also discussed, with a shift away from static stops toward real-time adjustments based on current volatility.
Sector rotation analysis led to the decision to move capital away from underperforming financial stocks and focus more on healthcare and tech momentum plays. Ernie concluded by reinforcing discipline, encouraging the team to avoid overtrading during less active periods and only engage when setups offer clear potential.