Market Close October 8th, 2020

https://ABEGINNERSGUIDETOTRADINGANDINVESTING.gr8.com/order_form.html

Look at me working my poor little fingers to the bone because there has been a development in our charts.

There is something that I realize I have not mentioned for a while. I can’t help but feel responsible for that oversight, mainly because it is me that didn’t mention it.

Most of the symbols (8 out of 10) that we use for this exercise are double-ups. This means that if the S&P 500 were to rise 1%, the SSO would rise 2%.

If the S&P declines 1%, the SSO would decline 2%.

We use our protective stops with every trade we make, but you can see how that importance is magnified with these symbols.

We are actually taking a look at the SSO this evening.

To the chart Robin…

SSO

As both of you know, SSO is our stock market proxy for the S&P 500 rising.

We did have a trade on the rise and were stopped out. Now we watch both symbols – UP & DOWN – for our next trigger. It could be with SDS as the trend switches to down, or it could be back into SSO as the trend continues up with a correction having taken place.

The blue EMA (21) is above the green EMA (55) telling us the uptrend is still intact. Since we always trade with the trend (this business is already tough enough without swimming against the current), we look to the long side to match.

The price and the red EMA (8) have had a nice little break dipping below the blue EMA. By crossing back above the blue, it has told us to giddyup.

Now that the moving averages have told us to enter a trade, we look to the left for a higher price. There is one at $76.68. This is resistance. We need our price to CLOSE above that level, or we take the risk that our price will bounce off the resistance (it is not just a clever name, after all).

You can see that today we got that CLOSE above the resistance level and we have put in a stop-buy just above the brave little candle that did the closing at $77.41.

If that price is hit we are in. Details will be shared here: position size, stop and risk level.

That’s it for me. Any questions about this (remember I am just giving you what you need to trade, the book and the videos go a little deeper), or your trading world, drop me a line: charlesgoddard2020@gmail.com.

TTFN,

Charles

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