S&P 500: Has not advanced our cause since yesterday. The 8 EMA is now fused with the 55 EMA and the price is above it all. If the 21 EMA crosses above the 55 EMA, we shall be looking squarely into the eyes of a long trade.
Gold: has bounced off of resistance while displaying an uptrend and is having a little think about what to do next. Our stop-buy in the stock market proxy, UGL, is still in place. It is holding at support at $60. Our buy is for $64.75.
Oil: still in its downtrend. it has held at support around $8 or more precisely, $7.80. There has been much wringing of hands regarding oil, but it warned us that it was in poor health as early as January, 2020. Let’s take a look at the weekly chart.
As I tell my students, a divergence will not always conveniently appear, but when one does, one must pay attention. The dates have been cut off my clip, but the last high from the right is not matched by a high in momentum (Jan 10th, 2020). (Black arrows). This is a set up. We only take action on the trigger which can be the crossing of a trend line, or one of the horizontal lines at $50 or more conservatively at $40. It turned into a lovely short trade.
USD/EUR: this pair is still in a clear uptrend and we remain in a trade in the stock market proxy, EUO. It continues to flirt with resistance. I prefer to watch from the sidelines. It is why we added support and resistance considerations to our decision making. I like to place stop-buys (or sells) just above resistance (or below support). We shall suffer for now.
Bitcoin: the 21 EMA, 8 EMA and price have fused together under the 55 EMD. As mentioned yesterday, we cancelled our stop-sell on the stock market proxy, GBTC.
Apple: This is a symbol that I think we will allow ourselves to explore other aspects of technical analysis, but only place trades from the moving averages.
Look at this beautiful Point and Figure chart. To the right hand side there is a buy trigger shaping up. If another x were to appear to the right of the other two columns we would be buyers. In fact, the pattern here is telling me that if the price could close above $305, it would most likely make it to $360.
On our regular chart, however, there are a couple of resistance levels that would give me pause. Our lesson for today is simple; that if you are using a couple of methods to determine your trades, the one you use is the first one to trigger. You then follow your process that goes with that action.
We, however, while mooning over the Point and Figure chart, will only use the rules of this blog to enter trades.
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