March 18th, 2020

The purpose of this blog is to demonstrate methods I teach by using the most simple and basic of methods and tools and 5 market instruments.

Every once and a while I will drop a pearl of wisdom.

Here’s one: If you have a professional advisor that advocates a “buy and hold” policy, run don’t walk to someone else. I was in that industry and I know that there is a vested interest in keeping you invested – and it ain’t you!

To the business at hand:

We start with the S&P 500. This is in a full blown downtrend as defined by our process (there are more ways of doing this) which is the 21 EMA being above or below the 55 EMA. The 8 EMA (EMA = exponential moving average). Scroll down to see chart examples. We are waiting for a trigger which will be described again when it occurs.

Gold: The EMAs are working their way to a downtrend. We are still waiting for the 21 to cross the brown. As always we don’t act on “looks like”, we wait for the actual event.

Oil: We are waiting for a new signal from oil. It is in a complete downtrend at the moment.

Bitcoin: Still hovering around support. The problem with this symbol is that there is no suitable proxy in the stock market. Everything else has one. I may change this symbol to something else.

USD/EUR Currency Pair: Still showing a downtrend, but looking to change that shortly. As mentioned, we will wait for an actual signal.

Using just five symbols teaches patience. It is important to stay with your process not to place a trade just because you are getting antsy to “do something”.

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