And just like that, it is Friday again…
We have no trades today to report, therefore no charts to show. If you want to see examples you can scroll down.
Over the weekend, as usual, I show the charts for all the symbols. Come back and take a look.
S&P 500: This symbol is in a downtrend per our definition. It is also per other definitions that I cover in my Basic Trading Books. We are waiting for a signal. When it happens it will be described for you.
Gold: Gold has touched down on support that formed last November. We are still waiting for our trend definition to be met.
Oil: Oil is also in a determined downtrend. The RSI is telling us that this symbol has moved to a downtrend. This is not just a quick foray into a correction. I use the RSI in a different way that the common oversold/overbought method which to me has limited value. Because it is a scale of 0 – 100, a symbol can be overbought or oversold for a long time and keep going in the same direction. How does that help us? It doesn’t.
USD/EUR: This is a currency pair about to confirm a change in trend. As always we don’t act on what looks like, we wait for the actual event before we act. Many traders, new and wizened, will jump the gun. They feel that they can make so much more money if they get in early. “What looks like” fails so often. Even waiting for the signal to confirm there is a level of failure; magical thinking just makes matters worse.
Bitcoin: Bitcoin is now in a downtrend. I am having trouble finding a proxy in the stock market for this one. I wanted a crypto. It rounded out our team nicely. I will make a decision over the next day or two whether we bring in something from the bench.
Wanna learn more, take a look here: