On your comment below about risk tolerance, I can’t agree more. I go to great lengths to highlight which trades are speculative or aggressive & even make a point to suggest reducing position sizes on the more aggressive/volatile trades downwards and even then, it is usually stated only if the trade meshes with one’s risk tolerance, trading styles & objectives… otherwise pass.

I trade everything from Treasury bonds to penny stocks & everything in between. Some of my trades are plan vanilla (relatively low risk/low return potential) & some have price targets of well over 100% gains with loss allowances well into the double digits. I’m merely sharing what I see & trade on this site but everyone must decide what trades & investments they make. As I like to say, if you’re not sure of the risk or 100% comfortable with a trade idea shared here, simply pass as the next trading opp is always right around the corner.

Trading is like playing baseball (when at bat); wait patiently for YOUR perfect pitch & avoid the urge to try and swing at every ball that comes towards the plate or you will strike out a lot more often than you get on base.

Lee, I can’t recall if I’ve gone over your first comment with you before but believe that I have. If not, my apologies (and the previous reply): Divergences are NOT a sell signal, simply an indication that a trend reversal is likely. While divergences, both bullish & bearish, give me a heads up that a trend reversal may be coming, those divergences need to line up with breakouts above (or below) well-defined bullish (or bearish) chart patterns and/or key resistance (or support) levels in order to trigger a buy or sell signal and even then, are best used with other confirming technicals.

Honest to God, I must have covered to fact dozens of times over the last year or so that the large divergences that continue to build on the daily time frame of the major indices such as QQQ is simply a series of smaller divergences, each & every one, without exception, which has played out for a TRADEABLE correction, meaning a profitable swing trade opp that was highlighted in advance & in most if not every case, closed out right on or very near the lows, very often reversing to a net long position at or near those lows.

The fact that this series of current smaller divergences that are encompassed by one much larger, potentially much more ominous (yes, bearish), negative divergence that spans back to the early Nov ’15 highs on the QQQ daily means that if that much larger divergent high does manifest in the form of a trend change, as I would expect, we’re not looking at a run-of-the-mill 2-5% pullback in the leading index.

Again, it is not as if I or anyone that I know has been “short the broad market” for a year or more now. Yes, the overall trend has been bullish & yes, I have very clearly admitted that I not only didn’t expect nor position long after the election but completely under-estimated how far that rally would go. However, there are a couple of points to that:

1) I constantly harp on the benefits of trading the best looking individual stock setups as well as the most bullish & bearish sectors & commodities vs. trying to game the broad market. I often state that when you short or go long the broad market, you are buying or selling the most bullish & bearish stocks within the stock market or a particular index. I welcome you to find another trading & investing service that offer full transparency by making available to the public every single post ever published since the official launch of RSOTC on Jan 1, 2012. (only active trade ideas & select market analysis temporarily reversed for subscribers is locked, with those posts always released after a limited period or time or when the trades have either been stopped out or hit their final target).

2) More so, I would challenge you to find any service, at any cost, that has come remotely close to the overall success ratio AND above average gains on the trade ideas posted here over the years. Again, not some group of “highlighted” trades but a service that provides complete access to all previous trade ideas & also one that provide specific entry points & price targets

3) To add to that, my trading style often involves catching tops & bottoms. As such, I may not nor will not catch every major turn in the market but I do catch a lot & when I miss a major turn, such as the post-US elections rally, I’d rather stand aside than chase it if I can’t make a compelling case to be long. I definitely missed this last rally & even experienced my worst streak of losses on short trades in years & quite possibly ever, since the elections but as you’ve noticed, I’ve been much more selective on the short entries in recent months & those short that I have taken or added as official trades, have done quite well in recent weeks.

Prokchop- You said it well above; Yes, where I believe this site stands out is in the individual trade ideas. There’s a reason that general stock market analysis (other than select updates temporarily reversed for subscribers) is available free to the general public. Calling the stock market can be easy at times but for the most part, is often quite challenging. Nobody & I mean nobody gets it right all the time, not even close. However, I find it much easier to effectively call swing trades & trends in individual stocks, sectors & commodities & that is where I believe the best value in this site is found.

If you click on the “+” sign at the upper-right corner of the site, a calendar of the archived posts on the site can be used to load post from any month and/or specific date. I would suggest pulling some long-term charts of both the stock market as well as other popular sectors & asset classes such as oil (USO, XLE), GLD, GDX, XBI, etc… Note the major inflection points (tops & bottoms) & then check the analysis posted around those major turning points. (note: Most or all of those market turn calls are major bottoms but the archives will also show that I was often, if not always net short at or near the highs).

Not at all cherry picking, I simply glanced at a chart of the broad market (QQQ & SPY) and pulled some of the posts from around those key turning points, something you (lee1) had asked me about my skill sets in doing so recently within the trading room. Hopefully the links below will open so again, simply scrub the date (and in many cases, the exact time) of these posts with the major market bottoms in recent years as well as some very time calls for major tops or bottoms on other sectors or stocks.

Nov 4, 2015: US Stock Market Reversal Appears Imminent: http://rightsideofthechart.com/us-stock-market-reversal-appears-imminent/
Nov 4, 2015: WMT Growth & Income Trade Idea: http://rightsideofthechart.com/wmt-growth-income-trade-idea/
Jan 20, 2016: Near-term Outlook For US Equities, GDX, GLD & SLV (video): http://rightsideofthechart.com/near-term-outlook-for-us-equities-gdx-gld-slv-video/
Long AAPL: http://rightsideofthechart.com/long-aapl/
SPXL Aggressive Long Entry: http://rightsideofthechart.com/spxl-aggressive-long-entry/
Jan 26, 2016 XBI (Biotech ETF) Look Poised to Rally: http://rightsideofthechart.com/xbi-biotech-etf-look-poised-to-rally/
Jan 24, 2016: SOXL Final Price Target Hit for a 33% Gain (short trade) http://rightsideofthechart.com/soxl-final-price-target-hit-for-a-33-gain/
Jan 24, 2016: GDX, Gold Mining Stocks Poised To Rally: http://rightsideofthechart.com/gdx-gold-mining-stocks-poised-to-rally/
Jan 14, 2016: Refiners On Deck For The Next Bear Market: VLO TSO: http://rightsideofthechart.com/refiners-on-deck-for-the-next-bear-market-vlo-tso/
Jan 14, 2016: SOXL Final Price Target Hit (and others): SOXL Final Price Target Hit (and others): http://rightsideofthechart.com/soxl-final-price-target-hit-and-others/
The SOXL (3x bullish semiconductor ETF) has hit the final target. Details & updated chart to follow.
“Please be aware that I have numerous positions across several accounts that I am activity trading today, covering shorts & taking new longs. As such, I can’t update each trade as a target is hit but will do so as soon as I get a chance.”
Jan 14, 2016: Closing TQQQ Short, Reversing Long: http://rightsideofthechart.com/closing-tqqq-short-reversing-long/
Aug 24, 2015:
Adding To Longs In Pre-market http://rightsideofthechart.com/adding-to-longs-in-pre-market/
Closing FAS Short Trade http://rightsideofthechart.com/closing-fas-short-trade/
Nasdaq 100 Price Target Hit: My final near-term target, T3 (dashed primary uptrend line) on the $NDX has been hit. Even if we are headed lower in the coming months, the odds for a bounce off this initial tag of support is very likely. http://rightsideofthechart.com/nasdaq-100-price-target-hit/
Still Favoring A Bounce Tomorrow: “I’ve decided to go home with a modest net long position in QQQ” http://rightsideofthechart.com/still-favoring-a-bounce-tomorrow/

Nov 4, 2016 UEIC Final Price Target Hit for a 20% Profit http://rightsideofthechart.com/ueic-final-price-target-hit-for-a-20-profit/
Nov 8, 2016 CARA Near Top of Triangle Pattern, On Watch for Next Buy Signal http://rightsideofthechart.com/cara-near-top-of-triangle-pattern-on-watch-for-next-buy-signal/
Nov 8, 2016 Marijuana Sector Overview (video) “The following video expands on the comments that I posted earlier today in which I believe the potential for a “buy the rumor, sell the news” correction in the marijuana/cannabis stocks is certainly a possibility in the coming days to weeks.” http://rightsideofthechart.com/marijuana-sector-overview-video/

don’t want to knock this site…its a great site for ideas and insight. but be careful know your risk tolerance!!!

from what I’m seeing and read they work better on individual stocks or sector etf’s and better when you are long coming out of a multi-month or multi-year base. whats kept this market up is rotation, rotation, rotation.

Yes, some day there will be a decent correction but bears say that ALL the time and for years so eventually one will be right I just wonder if divergences are especially actionable as it can take many months at times before they are right so you may end up for many months of missing out on strong markets waiting for that elusive correction.

interesting reply….many, many bears have been calling a market top or meltdown for some time now…say over 2 years and being somewhat new to this i know the day will come when they will say “I told you so”…but up to that time shorting and covering over and over…plus all the energy put into this…is it honestly worth it. just go with a balanced index of stocks/bonds based on your risk tolerance and FORGET ABOUT IT. just my view.

Not trying to bash but just pointing out the obvious and interested in your thoughts as to the value of divergences in being able to time corrections.