Market Close June 16th, 2020

Our trade in the symbol GLL is hanging on for grim life, but hang on it does. Because of the proximity to a short trigger for GLL, I am keeping an eye on its inverse, UGL. Which is why I keep hammering on the idea that if you have a symbol for up, and then one for down, and you have a series of symbols that represent a broad swathe of the market, you don’t need anything else while you are learning.

A couple of charts that presented some interest, even if no trades.

You remember the curious matter of the spike in UDN? To the chart, Robin…

UDN

A pattern that we look at in my book is kind of forming. The old cup and handle pattern. It is a bit ragged for me, so we shall keep an eye on it. Since patterns are not what we are trading in this exercise, we can see that our set up of an uptrend is in place (blue EMA above Green EMA), and our trigger price or the red EMA are above the blue EMA. The last impediment is resistance at the upper horizontal line. Once we get a close above that line, we will place a stop buy just above the candle that did closing.

The other chart we need to keep an eye on is the SSO. This the UP symbol for the S&P 500. Let’s take a look.

SSO

We were stopped out after the price closed below the diagonal trend line. The price appears to be preparing for another run for glory. We love glory, but we like our process to be followed even more. A close above the resistance line at position 1 will do it for us.

That’s all for this evening. If you have any questions or concerns, please drop me a line at: charlesgoddard2020@gmail.com.

TTFN,

Charles

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