S&P 500: Nothing much to report on the S&P 500. The price closed below the 8 EMA (red). While the 21 (blue) and the 8 EMA are trying to sort themselves out as they are both below the 55 EMA (brown).
Oil: Now this one is interesting. Last night I reported that our theoretical trade had triggered and we owned 300 shares of SCO. Let’s look at the chart because we are already out of this one.
You will remember that SCO is an ETF that trades on the stock market and is a double up. This means it goes up as oil goes down, but twice as much.
Today, you can see a candle gapped up in the morning and topped out at $65.82. As detailed last night we had a position of 300 shares that were purchased at $32.81. We had a trailing stop that trailed the price by $4.65. When the price fell back, we were stopped out of our trade at $61.17. This gave us a per share profit of $28.61.:
sold at $61.17 – purchase $32.81 = $28.26 X 300 shares = $8508 profit.
The theoretical portfolio we started in the first week of February, 2020 at $100,000 is now : $119,128.80
Most of our return so far has been on the back of falling oil prices.
USD/EUR: we have a trade still open with our stock market proxy EUO. Price is above the moving averages which are all lined up in uptrend formation. I was not happy with this trade. I will go through the reason when it is closed.
Bitcoin: The futures contract issued a sell trade with the price currently below all the moving averages. Our stock market proxy (GBTC) has a stop-sell in place, but is not triggering just yet.
Apple: While Apple was trying to lure us into a long trade, we resisted. This was mainly due to the presence of overhead supply otherwise known as resistance. The price ended today sitting on the 21 EMA (blue) after closing below the 8 EMA (red). All three EMAs are coming together.
I get asked about Apple, so tomorrow I will try to give you a bit clearer picture of what I think is unfolding.
Gold: The price of gold has fallen back and closed below the 8 EMA (red) and is now sitting on the 21 EMA (blue), all the while still displaying the characteristics of an uptrend: blue above brown. A new long trade just might get triggered here.
Any questions or comments, drop me a line at email@example.com.