Well, when hump day came to its conclusion, I found a couple of pleasant closes in the charts.
First, our open positions: SSO (the UP ETF S&P 500) and UDN (the ETF representing the U.S. dollar struggling against a weighted collection of global currencies), have gone on to new highs today.
May they continue on their journey…
First chart, TBT, the ETF representing DOWN 20 year treasuries.
Our definition of uptrend or downtrend is contingent upon the position of the 21 EMA (exponential moving average) represented by the blue line relative to the 55 EMA represented by the green line. We only trade in the direction of the trend. As we look at the chart above, we can see that the blue line is below the green and therefore tells us we are still in a downtrend. Even though the triggers, price and/or the 8 EMA represented by the red line have crossed above the blue, we cannot place our trade because it breaks our rules: going long against a downtrend.
Except we have a tie breaker up our sleeve. If we have the triggers triggering happily, but the trend is against them, we look to the ROC in the upper pane. It is above the 0 – line. You may not be able to see the 0 – line, but to the right the numbers are positive.
One other thing that would hold us back is the resistance just above our trade spot. We definitely needed a close above that level. I went into that last night, you can scroll down if you wish to read all about it. You can see that today’s close has been above the resistance line as represented by the upper, horizontal, black line.
Our trade will go just above the high of the candle that did the closing at $17.09. If that triggers tomorrow, share positions, risk, etc will appear here as like magic, as if Merlin himself came down from the Tor above.
Our second chart this evening is of GLL. This is the ETF that rises like the Dark Knight when gold declines.
As I have mentioned many times before, we can only go by our process. If we listened to all the scuttlebutt, we would be going around in circles.
We can see the same situation as in the previous chart, so I won’t repeat it all.
– the trigger is above the blue line
– there is a downtrend still bearing down on us, but the ROC is above the 0 – line on this evening.
– the resistance line has been closed above by a brave little green candle giving us the go ahead to place a stop-buy just above the hair on its head
That price would be: $ 40.47.
If this price is crossed tomorrow, details will appear here.
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