Everyone wants winning trades -- and the best chance of getting them is when the forces in favor of the trade converge. Identifying these convergences is where Mike Paulenoff is best! Combining macro and technical analysis, Mike will put out a trade only when the macro environment is as attractive as the chart.
For example, he recently traded Guggenheim Solar ETF (TAN) to capitalize on the solar energy sector's "perfect storm": Backing by, and tax credits from, the Obama Administration, solar panel price compression, rising fossil fuel and electricity costs, and constant geopolitical threats to global energy output.
And the chart itself needs to have a number of a confirming signals -- the right pattern and relative strength indicators, for example -- including confirmation in different timeframes.
In the case of TAN, the technical set-up suggested strongly that a major corrective phase off of the March 2014 high was complete ahead of the initiation of a new up-leg within the larger bull phase (in TAN) that began in November 2012 at 12.60.
It's all about perspective. When the big picture of the sector or asset class -- or of the chart, for that matter -- is aligned with the expected move, the probability of a successful trade is greatest.