And we are back to Monday. As reported we have four open positions out of the five instruments we keep an eye on. The reason that is odd, is that they are different parts of the market and as such they rise and fall with different stimuli acting on them.
Maybe that means we will get stopped out of one or more quite quickly – we shall see.
All trades are still open, so nothing much to report.
We will take a look at my favourite type of chart: the Point and Figure.
I know – it is indeed beautiful.
We can see on the right hand side the rise that matches our trade in SSO, the ETF that mimics the S&P 500. The down trend line has bee broken, we seem to have headed back to an uptrend – interesting. I would have bet money that another shoe needed to drop. I think I mentioned at the time we placed the SSO trade that there was danger that there was another leg down to come, that is was quite a common pattern. All I could do was enter the trade based on our rules and we shall see where it takes us. At this moment at least it is risk-free, which is always our initial goal when we enter a trade.
The P&F Charts provide fairly reliable target projections – except the last one, of course.
For now the chart is telling us that there is quite a bit of upside available in Apple. It looks as if $387 is a possibility, especially if $333 is in the rearview mirror.
The down trend line was broken.
Keep an eye out this week for a couple of videos that will deal with some interesting aspects of trading.
Anyway, that’s it for today.
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