Weekly Round – Up to September 25th, 2020

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The weekly Round – Up: our favourite time of the week when we take a look at a chart of each of the instruments we follow. There are only five, so hang in there.

During the week the only posts – usually – on this site are trades that have taken place, to open or close a position. We do not have any trades open at this time. Which I hope says something to you; that you don’t have to trade all the time. Wait. Patience is a giant aspect to successful trading. Don’t force things.

We have been trading 5 instruments since the start of the year with a basic method. All trades have been recorded.

The portfolio that started at $100,000 is now: $142,625.10.

We are pleased with the return so far. If that is all there is for the year, so be it. The market makes explosive moves. It does not do the nice averages we see in the financial pages.

Let’s get started by taking a look at the S&P 500.

S&P 500: SSO = UP, SDS = DOWN

SDS

We were stopped out of a trade in SSO. It seemed to be weakening further. For this reason we take a look at its inverse. It stands to reason if the UP symbol for the S&P is declining, there maybe something for us on the other side.

You should be checking both symbols UP and DOWN for while. Of course if one side is trending strongly, there won’t be anything for you on the opposite side.

The SDS is making a move. Not us, though, just yet. The blue EMA (21) is still below the green EMA (55), which to us is a downtrend. To enter a long trade here is going against the trend, something we don’t like to do.

So we shall wait for the blue to cross the green and if the red EMA (8) and or the price is still above the blue, we shall look a little more seriously at a trade.

Gold: UGL = UP, GLL = DOWN

GLL

GLL rises as gold declines. There was a lot of yelling about gold going to moon, but it seems to be sideways to down. We are looking at GLL because its inverse is looking like a short sell.

GLL resembles the SDS. There is some upside looking noises, but our process has not yet been fulfilled.

Oil: UCO = UP, SCO = DOWN

UCO

Oil has been in a trading range for some time. In all likliehood consolidating from its massive fall.

We don’t really care about the why of what it is doing as we live in the world of trades.

We need, the blue EMA to be above the green EMA and then the price or the red EMA to cross above the blue EMA. We look left for a couple of months to check for resistance, if none then we act.

20 Year Treasuries: UBT = UP, TBT = DOWN

TBT

TBT has been sideways for awhile. An interesting feature is that the EMAs all bunched together. Usually where ever the fastest EMA goes (in this case the 8 EMA red), the others follow.

We can see the red sticking its little head out of the group. We will be taking a look at UBT, there maybe something there for us. Stay tuned.

Dollar Index: UUP = UP, UDN = DOWN

UUP

We were stopped out of a trade in the inverse UDN that we held for some time. This may indicate a change in trend for the dollar index. For it to be rising, it means the U.S. Dollar is strengthening against a basket of global currencies after quite a decline.

Why? Who knows. Maybe there is hope that Biden will win the election, maybe that they think Trump will.

It has always been a fascinating thing that people are willing to place trades on such things when they have no idea how much of that news has already been priced into the market. That is the trading world for you. It is tough enough to keep things going in the right direction acting on only what we see as it adheres to our process. It is no wonder 90% of traders don’t make money if they are placing trades in such an imprecise manner. It is the world of trades for us.

That is a wrap. Thanks for stopping by. Drop me a line if you have any questions that have arisen because the the above, or anything in your trading world whatsoever.

TTFN,

Charles

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