Weekly Round-Up to October 9th, 2020

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Alright, the weekly round up. At least we had some action during the week, so the withdrawal symptoms shouldn’t be too bad for you.

Let’s get started as we often do with the big kahuna, the S&P.

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

SSO

We have twice the excitement as we also had a trade triggered on Friday.

As mentioned in an earlier post all systems were go for a trade. A stop-buy was placed for $77.41. The market obliged us by hitting that level and triggering our stop-buy.

Details:

$14,000 (10% of the portfolio) / $77.41 = 180.85, rounded to 180 shares.

Protective stop is placed just under support at $71.71.

Risk = $77.41 – $71.71 = $5.70 X 180 shares = $1,026 (< $2,800 (2% of portfolio))

We are all set. Our process has been followed to the letter.

All we can do now is wish our little trade, ” god speed”!

Gold: UGL = UP, GLL = DOWN

UGL

Gold is an example of why the investors who inhabit the trading world get themselves into trouble. How many of them went ahead and invested in gold based on the headlines that it and Alice were going to the moon.

Wait for your signals; follow your process. Even if the moving averages do their job, we still have a level of resistance to take into account.

Oil: UCO = UP, SCO = DOWN

UCO

I am displaying the ETF that is the proxy for oil rising. I could have shown the ETF for oil declining, it has been that kind of side ways, indecisive time for oil. Ah, well, we will sit on our hands (your own hands, please) until there is something definitive to act on.

20 Year Treasuries: UBT = UP, TBT = DOWN

TBT

We were triggered into a trade for TBT, the stock market proxy for treasuries declining earlier in the week. As you will remember the charm of these symbols is that they can rise as the underlying instrument declines. It allows any stock account to buy them, despite restrictions that can exist around retirement accounts – for example.

It hasn’t been that convincing. The stop-buy was triggered by a candle wick that teased our $16.47 stop. Ah, well, what can a po’ boy do but take every trade as kicked out by the process.

Dollar Index: UUP = UP, UDN = DOWN

UDN

The Dollar Index is a bit different in that it’s rise and fall are determined by a battle between the U.S. Dollar and a weighted basket of global currencies.

UDN represents the U.S. Dollar declining against the basket and obviously the UUP, the opposite.

There is nothing here for us just yet. We do not ponder the whys and wherefores of the U.S. Dollar. As Jake Bernstein has said, ” ours is not to wonder why, ours is but to sell and buy”.

If you wish to live in the world of trades where the 10% of profitable traders reside, heed those words.

That’s it for me. If you have any questions, please drop me a line: charlesgoddard2020@gmail.com

TTFN,

Charles

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