Each night I add to the trading that started at the beginning of January, 2020. It is all in my book, which you can grab at:
I like to show prospective trades we are considering before they happen.
We were triggered into a gold trade last week by way of the proxy UGL. That symbol fell a little today, but we were not stopped out. Scroll down for all the details.
The SSO which is a proxy for the S&P 500 on the long side is ready to go. If you scroll down you will see that we are waiting for a close above $114.74 to enter a trade. The price today jumped above that level, but then fell back. We will check after the close tomorrow as we go through our symbols.
Let’s take a look at the chart for TBT…
TBT is the symbol that represents 20 year treasuries on the stock market as an ETF. As you can see from the chart, the 21 EMA (blue) is below the 55 EMA (green), this indicates a downtrend. Normally we don’t trade against the trend: a long trade against a downtrend.
We have an exception. The triggers, the 8 EMA (red) and the price have closed above the 21 EMA (blue). In a case like this if we find that the ROC in the lower pane is above the 0 line, or rises above the 0 line while the rest of our set up is in place (within three days), we will enter the trade.
The next question is where to place our trade. Normally it would be just above the high of the candle that completed our pattern. But there is a level of resistance at $16.66. I will place the stop-buy just above that level at $16.73. Position 1.
Our protective stop will go just below support at $14.93. Position 2.
Check back tomorrow for an update on our UGL trade and whether we were triggered into either of the two above.
If you have any questions or details, please drop me a line at: firstname.lastname@example.org