Alrighty, now that the trading stand down period is over we can get back to work.
Biden is now President. The headlines have been what will this one or that one do to the markets. First of all, we don’t care. Most traders do not. I am going to flesh out some reasons tomorrow.
For now we are getting on with a look at our charts and see what has been going on there while you lot have had your feet up.
Let’s start with the S&P 500…
S&P 500: SSO = UP, SDS = DOWN
The SSO is our proxy in the stock market for the S&P rising.
We can see that our moving averages have told us that the trend is UP (blue above green) and that the trigger – price and the red- have signalled a buy.
When we cast our eyes to the left to check for higher levels that would be resistance, we find it at $83.66.
We don’t want to get into a trade just to have it bounce back from that level. The more certain trade is to wait for a break of resistance. We like to stack the probabilities in our favour, and this is one of the ways we do it.
We are now waiting for a CLOSE above $83.66. Not just a cross – it is an important distinction.
Oil: UCO = UP, SCO = DOWN
As most of you know Oil took a mighty fall earlier in the year and has been struggling ever since.
UCO still shows as in a downtrend (blue under green). There is nothing to see here just yet.
As an aside the SCO symbol has been checked just to make sure there is nothing going on with respect to the inverse.
Gold: UGL = UP, GLL = DOWN
Gold held great promise back in the summer. The headlines were all excited about its inevitable rise to $3,000.
Comments tomorrow will include such things as these headlines.
Gold has meandered sideways for sometime. This is the style it has had for a number of years. I know this, but it is not important for you to know it to trade it: just follow your process.
From our process we can see that gold is in a downtrend and that there is no action to be taken here.
Dollar Index: UUP = UP, UDN = DOWN
Again we find all systems go from our moving averages, but resistance holds us back. We need a close above $21.32 before moving any closer to a trade in this symbol.
20 year Treasuries: UBT = UP, TBT = DOWN
TBT is our proxy in the market for shorting 20 year Treasuries.
It is, at this time, our only open position. We have a trailing stop of $1.13 behind the highest price achieved. That was $17.28. This means our stop has been anchored at $16.15. Therefore, if the price falls and touches this level we are out of the trade.
We entered this trade at $16.47 with $1.13 per share of risk. The price has risen taking our stop up with it. Our risk is now .32 a share. We would still suffer a loss, but it has been lessened.
Our portfolio now sits at $142,419.90.
Exciting news! I have a webinar coming at the end of the week. It will give you information and explain the trading method we have been using here in a bit more detail. It is FREE!
Click here to sign up: https://tradingmadeeasy.gr8.com/
That does it for today. Any questions? Drop me a line at: firstname.lastname@example.org.