Shorting till 0.764 fib level. This area is where consolidation occurs - as shown by the circles on the chart. Overall trend is still bullish as long as the key pyschological support 10,000 holds. Thus why I am hedging by buying GER30 futures. Stop loss on buy positions 10,179 and 10,000.
The market has already calibrated mostly for the declining oil price. Energy sector not so big either in the S&P0.00% , accounting for 6,5% of the stocks . Stoch indicates oversold on daily chart . Marked has also re calibrated after the first initial rate hike and upcoming hikes is expected. Dollar might stay flat and rate hikes prolonged to avoid drop in oil...
This is a key moment which is hedge is playing. I’m still looking for a new high of us dollar index. 1, It’s a monthly 5 wave from 2011, I believe in 7 waves too but this is a 5 wave with RSI divergence. 2, Because it’s a 5, I’ll use some tools for measuring 4th. wave and 5th. wave from monthly weekly and daily. 3, Now, we’re at monthly wave 3rd. of 3rd. and in a...
The Nasdaq is breaking new high and the Russell and is not even close to new highs. We posted this weekly chart a week ago...is this a clue?
What does this book tell us? Just saying! Time will tell.
At risk of sounding like a broken record...this is why we use triggers. Even though price zoomed in to the Trigger zone, we haven't gotten close to triggering long. We are TAKING OUR LONG TRIGGER ZONE OFF. We will now wait to see what a bounce looks like...but everything points to a visit to the 200 Day EMA. We will post a trigger zone this week.
With all the press about boots on the ground in Syria and other parts of the middle east, its not a surprise that defense contractors are doing well. Take for example DXS, the defense contractor index, which is showing solid, sustainable growth while breaking levels formed by gaps from the aftermath of Black Monday. Note gradually higher lows, while 'resting' a...
We are watching the Russell in this area. It had a nice fake on the break but we think the Russell has not caught up yet. If she does then 1200 could be on the radar screens. If she breaks below the 1138 area then the indexes are in trouble. Keep on you watch list.
First note the consolidation of volatility after the small rally earlier in October. The indicators suggest that that bullish run has exhausted and a retracement can be expected. Note the lack of buying pressure by the OBV. To set profit targets, we can look at the Fibonacci retracement from the most recent high back on 10/23. These also coincide nicely with...
The DXY has been rallying like crazy the past few days. The higher lows indicated over the past week or so indicate a solid uptrend. The MACD and RSI illustrate that we still aren't over bought yet, so if you haven't gotten in, there still appears to be time. Profit targets can be garnered by the levels of support and Fibonacci levels anchored at the yearly...
DAX has been in a real uncertain territory over the last several weeks, Price has been fighting to break the weekly TL support which spans over 1610 days. Finally last week we had a close above the weekly TL support, with support at 10k helping to create a price floor which prevents it from going lower. The week closed with a very nice pin bar, so as of now I am...
The Indexes continue to sell and are in need a of a rest or snap back. We WILL BE HOLLDING OFF on shorting bounces. Rallies can be violent so we will wait to see how far we bounce. There are plenty of good opportunities setting up in GC, E6 and CL. No need to force a trade. Patience pays!
After covering our last trade the NQ is still selling off. We will establish new positions on bounces. For now these will be smaller positions. As we have mentioned...snap back rallies can be violent. Remember NO TRIGGER, NO TRADE!
We have covered the last leg of our NQ trade. It was a solid trade. Understand that when markets are selling off the snap back rallies can be violent and quick. Today's afternoon rally was enough for us to cover per our plan. For now we will watch the NQ, ES and TF for more opportunity. Trade well.
The NQ has hit its first two targets. Stops have been pulled to lock in more gains. From this point target 3 is open. However we will watch the break down area at 4218, if price starts trading above that area with volume then we will cover the trade and look for another setup. Ideally we would like to get a quick slide to 4150 area but that would be a perfect world!
After two attempts at getting target #2 we failed! Bummer. That's trading and as we've heard many time, "don't be a dick for a tick", we aren't. Price came within 5 points of our target and back away. We believe price is not done testing the down side so we will hold to our plan. These small bounces are on low volume. On the next visit to the recent lows we...
As we creep closer to our second target we are pulling stops to Break Even plus 10 to lock the trade in. We are fairly confident we will see target number 2 early in the session today. Regardless, we want to manage the trade properly. Yo never know when the PPT will swoop in to save the market. ;) Trade well!
We are short the Nasdaq from our post last night. We have set out stops and trigger. While this chart doesn't show it we hit our first target. We will leave stops in the same place and see if we can get Target #2. Stay Tuned