Stock Market Close April 1st, 2020

Apple

The chart above is of Apple. We have a trigger for a short sell. In the markets you should be prepared to go short just as readily as going long. We will just deal with the stock market at this time. I only use stocks on the S&P 500 for shorting. This is because of the volume in that index. The big risk for shorting is that if you need to cover, there isn’t enough volume to do so when required..

Our decision to short comes from the blue EMA (21) being below the green EMA (55), indicating downtrend. During the downtrend there was some pushback by the bulls (buyers). The price was forced up to the blue line, but it did not close above it which would have been my preference. You can see that the ROC ( momentum) is below 0. So, we will go ahead with placing our short. At the clever yellow line, we have what the Japanese call a rising window. The bottom of that window is support. We will place out short just below support. If this trade triggers tomorrow I will detail the numbers: number of shares, stop placement, etc.

S&P 500: the S&P looks like a short as well. Since many of you do not have futures accounts or the type of account that would allow such reckless behaviour, I will show you how to achieve the same effect buying a stock symbol long. In this case I want to see another candle formed without rising above the highest one in this wave. It is my mini definition that a high is anchored in place by three candles, none being any higher than the highest. The best is when the two candles following the first one are successively lower. Maybe more on this one tomorrow.

Gold: price still remains bunched with the EMAs

EUR/USD: we have a short signal. I would like another candle in place before acting. We may have something here as well tomorrow.

Bitcoin: is in the same boat. We have more action than we can handle tomorrow night.

Not sure if I have mentioned this before, but I make my trading decisions while the main market is closed.

Oil: oil has been enjoying a few days kip around the $20 mark. It is forming a level of support that may be of use to us in the future.

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