I need to amend the Legend above. There will not be a link to a book and video package, instead it is a link to a sign up for a webinar that goes through the trading method used here in detail.
Let’s get to the reason we are here at the moment: The Round – Up.
It is that most excellent time of the week when we look at all five instruments we follow for this trading exercise.
I cannot believe I have been at this for almost a year. I shall be continuing in the New Year, but as me. I will use trading methods I enjoy and instruments that I also like.
Let’s finish the task before us…
The portfolio currently sits at: $142,130.90
We have at this moment three open trades, so let’s start with those.
S&P 500: SSO = UP, SDS = DOWN
The SSO is our stock market proxy for the S&P 500. You can see that the moving averages did their job on the right hand side of the chart. A CLOSE took place above the resistance level and following that a stop-buy was placed just above the high of the candle that did the closing. Details of the trade were posted here in the last week of November. You can see the details by scrolling down.
The trailing stop was set at $4.56 below the trade price and has followed the price up. Each new high set by the price has anchored the stop a little bit higher.
The trade is almost risk free: the stop is almost at the buy-in level.
Gold: UGL = UP, GLL = DOWN
Gll is our stock market proxy for gold that rises as gold declines. Are we expressing our opinion about gold with this trade? Absolutely not! We take all signals based on our method.
You can see how our method got us into the trade with our trailing stop $4.63 under the trade price.
The high you see has anchored the stop out at $31.81. If the price touches this level, we are stopped out automatically.
Dollar Index: UUP = UP, UDN = DOWN
We had reported that a pending trade was set up, that we were just waiting for the final conditions of the method to be fulfilled.
This trade has been triggered. You can see that all conditions were met on the right hand side of the chart.
We had not yet reported the details. We shall do that now.
10% of the portfolio = $14,000; 2% = $2,800
$14,000/$21.41 = 653.90, rounded to 650 shares
Stop = .25 X 650 shares = $162.50 (<$2,800).
Oil: UCO = UP, SCO = DOWN
UCO represents that slippery customer oil on the stock market for us. We have no trade here as you can see. It has been consolidating for some time now. Does it return to its former glory or remain wallowing in ignominy? We don’t know and don’t really give a toss. If we get a signal on the rising of oil or on the decline of oil, we shall respond with a trade per our process.
20 year Treasuries: UBT = UP, TBT = DOWN
TBT is the short end of the stick. If 20 year treasuries decline TBT rises. You can see on the right hand side that the moving averages have done their job and a brave little candle has CLOSED above resistance. We shall now put in a stop-buy just above that level. If the market touches that price we will have a trade and will report all details here.
That is a wrap for the week. If there are any trades during the week, we shall post details here. If not, we will be back next week for the Round – Up.
There maybe some information posts during this week. Starting the New Year may not see the same symbols being used. I want those of you who will continue using them to understand how they work a bit better.
As mentioned, click: https://tradingmadeeasy.gr8.com/
To sign up for and then receive a webinar link that may fill in some info for you.
In the meantime, if you have any questions, please drop me a line: email@example.com.