The Weekly Round-Up…is there anything more exciting?!
I don’t think so, let’s get started.
There is a legend at the top that explains the bulk of what goes on here.
This week we have a couple of trades to confirm and provide details of at least one of them.
Gold: UGL = UP, GLL = DOWN
If you would cast your peepers to the right hand side of the chart above can see our process has been met.
1 – blue EMA (21) is above the green EMA (55) confirming our set up: the trend; it is UP.
2 – The trigger: the red EMA (8) and/or the price has CROSSED above the blue EMA to confirm we are a go.
3 – We now look to the left for a higher price than the trigger price. It usually represents resistance, which usually means a bit of a roadblock to our trade. That resistance is shown by a black horizontal line at $33.50.
(my book examines why resistance and support are so important as we place our trades)
We need a CLOSE above that line, which we get.
4 – Our stop-buy is placed just above the candle that closed above resistance at $35.15.
5 – That price is passed and consequently we are triggered into the trade, at which time a stop-sell is placed at $30.52 (red horizontal line).
6 – Details: 10% of the portfolio is $14,000; 2% is $2,800
$14,000/$35.15 = 398.29, rounded to 400 shares
Trailing stop starts at: $30.52
Risk = $35.15 – $30.52 = $4.63 X 400 shares = $1,852 (<2%)
All systems are a go. We wish our little trade “god speed”.
S&P 500: SSO = UP, SDS = DOWN
SSO is our stock market proxy for the S&P 500 rising. A trade was triggered per our process and the details revealed here.
Just to update you. The high to the right hand side of $86.17 has anchored the trailing stop at $81.61. Should the price fall back and touch this level, we will be stopped out automatically.
Oil: UCO = UP, SCO = DOWN
Not much to report here. Oil has been in a cage fight for a while for a number of reasons we don’t give a toss about.
UCO represents the rise in oil on the stock market. If we get set – up and trigger, we shall enter a trade without giving it a second thought.
Dollar Index: UUP = UP, UDN = DOWN
UDN represents the weakening of the U.S. Dollar against a basket of global currencies.
As you can see all of our process steps have been met.
A stop-buy is in as we speak just above the top of the candle that closed above resistance at $ 21.41. If the price rises above this level we shall be triggered in. A stop-sell will be placed at $21.16 to protect our rear ends. It will be a tailing stop because these are volatile times.
20 Year treasuries: UBT = UP, TBT = DOWN
Not much to see here either, we can move along.
As discussed before we examine both sides of the market instrument. The UP and the DOWN. We use the down proxy because many of you do not have accounts that can cope with the short side of the market. We can benefit from something declining by going long in our proxy.
That’s it for me. Any questions, please drop me a line at: email@example.com.
If you are interested take a look at my training webinar. You can sign up at: