Monday, September 22, 2014

Market update

In my previous post, I indicated that we were rather flat going into FOMC. So, we did not participate in the rise and decline of the markets since.

Previous market update here

If you followed the previous market update or if you followed my FOMC post, you should still be good (= market did not move much either way since 1 week) and be unscathed. I closed most of my holdings prior to FOMC, so I had a 1% profit on the previous IT signal. What now?

Market update
VST/ ST on a buy
IT turned buy on 09/18 close (today's weakness should be good to initiate a buy with a stop...)
VLT/ LT - Buy

I am stressing on the stop this time because the breadth is very weak in the market. While we are still on a buy on all timeframes, this uber bullishness could turn into a disaster. Then, we could simply sell short and wait, right? Not really. We do respect price, hence we follow price. However, it helps to look around what breadth is doing to be cautious.....

Gold update
VST/ST/IT/LT - Sell
VLT - changed to Sell but we will wait till month end for confirmation

Have a good trading!

p.s: I do not have any positions on BABA now but I did daytrade on the IPO day few times for a 1% net gain on the account (not BABA position)....



1 comment:

  1. Initiated a long today morning at open, stopped out within an hour. Close is important but it is very hard to take a ride down the slope immediately after. Will initiate short positions at close of 4 hour chart. BABA is on down signal, so no trades yet, short selling not even allowed - not yet!

    ReplyDelete

Subscribe here and follow by Email