The close of the markets today saw some trades for us.
First the old. Our long gold position is still open – albeit stalled. You can scroll for details of the trade.
Our SCO trade is as follows:
The red EMA crossed below and then back above our blue EMA. We put a stop-buy just above resistance at $18.92 and a trailing stop at $15.41.
10% of our portfolio = $10,000 / 18.92 gave us a position of 528 shares. We rounded to 500. Our stop of $ $3.52 x 500 = $1755 risk.
Our risk allocation is met: less than 10% of the portfolio as the position. The stop multiplied by the number of shares is less than 2% of the portfolio if everything turns against us. The trailing stop has followed the price up so that the high of $37.90 has anchored the trailing stop at $34.38. We already have quite a nice profit guaranteed to us at this point.
ULE is our proxy for the USD / EUR . As the EURO gains value against the US dollar the ULE rises.
You can see the chart above displays an 8 EMA (red) above the 21 EMA (blue) and the 21 EMA is above the 55 EMA.
This set up was finally triggered when the blue crossed the green, meeting our criteria for an uptrend.
We bought 700 shares at $13.87 with our trailing stop at $13.27. Our position size is $9709 – under 10% – and our risk is $420 – 2%-.
SDS is our inverse ETF for the S&P 500. It was triggered by our EMA setup at $29.64 with a trailing stop at $25.63. We bought 300 shares with $1203 of risk. Again within our risk process.
It was interesting after a quiet few days to have several trades burst upon us in short order.
Remember if you have any questions, drop me a line at: