Close of Markets April 14th, 2020

Let’s get right to it…

S&P 500: The S&P has closed above the 55 EMA, and our trigger EMA, the 8 (red) has closed above the blue. Let’s look at the chart …

S&P 500

We are currently in no-man’s land with this symbol. For us to enter into a long trade, we need the blue (21) to be above the green (55). This is because of our rule that the trend needs to be up for us to go long. It isn’t, so we won’t.

Gold: Gold continues its strong uptrend. We were triggered into the gold proxy UGL, and are still in it. As the price advances, our trailing stop, like a faithful Sherpa, follows it up. If you want to check in previous posts you will find that the stop started just under support at $5.18 from the price. This means that at every new high the trailing stop anchors at a new high also. The high today was $65.51. If we subtract $5.18 from the high of today, we will find our Sherpa spending the night at $60.33. You can see the beauty of this. If the price falls off the mountain tomorrow, the Sherpa will get us out of our position with $3.68 of profit that cannot be taken away from us – how good is that?

Oil: the oil futures triggered a short trade. The problem is the oil proxy we use to mimic shorting oil, SCO, is not confirming. In fact the price for SCO is below all EMAs. We will wait until they confirm the signal from the futures market. As an inverse ETF, we need the 8(red) to be leading the way, and the blue(21) to be above the green(55).

USD/EUR: This pair triggered a short trade. We entered a trade in our stock market proxy EUO. It, too, had a trailing stop, which is darn close to stopping us out. If it is the case, the carnage will be detailed here.

Bitcoin: Is in a downtrend and has triggered a short trade. We placed a stop-sell, but it did not execute. We used a stock market proxy. If we are actually in the trade, the chart and details will be provided.

Apple: this stock is showing the same profile as the S&P. Not that surprising, really. The price is above the green (55) and the red (8) is above the blue (21). Sadly, the blue is not above the green which we need to confirm an uptrend.

As always, if you have any questions or comments, please drop me a line at:

As always, please remember this is a teaching exercise only. Do not construe anything as investment advice.



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