Stock Market Close April 7th, 2020

There is not much to talk about as far as our six symbols are concerned, so I thought I would expand a little on my comment about trailing stops. As I mentioned, my preferred placement of a protective-stop is just under support. This is the most likely place that, if breached, we are wrong with our trade. It could be that we have just arrived at the wrong time – it doesn’t matter if we are stopped out – so be it. It only matters that our stop was in an intelligent spot and the trade had the room to breathe.

Therefore a static stop is a good choice at the beginning of a trade. I usually only bring out a trailing stop when I have had a warning of some kind. It could be that there is a divergence, or a trend line break, or possibly the pushback was greater than the average of the pushbacks in the trend to date.

The trailing stop is not a bad idea for the brand new trader to begin with. If the trailing stop begins its life in an intelligent place: just under support. This will be covered a little more as the situation warrants.

In the meantime, the markets are jumpy and capable of large moves, so I will continue to use them on trades out of the gate for a little longer. What can I say, I am a cautious fellow.

Let’s pick over the bones of today’s goings on…

S&P 500: There has been a bit of a push back. It is still in the realm of a correction of the down leg. The Exponential Moving Averages continue to tell us downtrend. The price has closed back above the 21 EMA. If the price should close back below the 8 EMA, we would go short.

Oil: The price for this instrument has also closed above the 21 EMA. Since our set up remains a down trend, should the price drop below the 8 EMA, we would short this instrument also.

Gold: The uptrend is still in place. Even though our stock symbol, UGL, fell back a little, it was not enough to stop us out. Our trade soldiers on bravely.

Bitcoin: Bitcoin is still in a downtrend, but the 8 EMA has closed above the 21 EMA. The price has used the 55 EMA as resistance. The set up is for a short trade. We just need the price to cross below the 8 EMA.

Apple: Apple is also using the 55 EMA as resistance as it closes above the 21 EMA. Again we are waiting to see if the market wants to continue its upward push or to reinforce our short set up by crossing below the 8 EMA.

EUR/USD: This the second trade we have open. The stock symbol we used was EUO. It fell back a little from today’s high, but not enough to stop us out.

As always, any change in a trade, or the placing of a trade, there would be a colourful chart and some details.

Any questions or comments, drop me a line:



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