Market update

VST/ ST - On a buy

Market update

I have a market buy on the ST. Previous market update here

Market update

Good morning Trader, How is you? 

I have taken a good break for a couple of months. I did miss a couple of market swings, but I was working on other important opportunities for myself. So, I didn't miss anything for not trading for the past 2 months. I got back couple of weeks back, I took time to settle into a rhythm, I traded on paper for 2 weeks. I am ready for new trades.

The market hasn't gone anywhere in the last 1 1/2 months. In the market, there are going to be phases like this. Hence, even if you are a market trader (trading /ES or SPY or QQQ...), you will benefit if you trade some other stocks with high volume, big market caps, no/ low news tickers. Every single ticker doesn't always rhyme with the market. 

Market update

VST/ ST/ IT/ LT - on Sell obviously (no positions)

VLT - ticked to Sell right now but too early as we are only in the 1st week of the month, things can change by the end of this month

For definitions of my time frame terms - click here 

We are on sell mode in all time frames, things look gloomy, huh? If you are already on the short side, hold on! I do not suggest new positions in the middle. I am looking for a turn, however. Few of my barometers have been suggesting a turn (one below in the chart) but price is king and indicators are queen. Barometers like the below only suggest me that a possibility of a turn is possible, but no guarantees till the price turns. 

I have posted this chart few times in the past to pick tops and bottoms. At this point of this barometer, it can be said we are forming a bottom. It doesn't mean you exit your current positions. It means that you should be on alert for the possibility of an exit/ scale out of your current (short market) positions.  

Gold update

VST - Buy

ST - Turned to buy at 9 am EST

IT - Sell

LT - Buy

VLT - Buy

Market update

Previous market update here

VST/ ST - Bearish

IT - Turned bearish as of market close yesterday (stopped at 1880 SPX long)

LT - Still bearish

VLT - Bullish

 

I am short SPX right now with adequate chops. That's not a typo, but I meant 'stops' haha. The April - May period every year is full of chops and stops get hit relentlessly. In the my 2013 annual report, I did note the April chops effecting portfolios.

 

I am short right now but I am doubtful of this decline, let's see. I am watching the options market everyday after close. While $CPCE is in Bearish territory (>0.75 in the bottom indicator) (chart below) ,

 

 

it also means that a close below that 0.75 means we are bullish again. If you keenly observe the chart, a rise above 0.75 and close below marks the bottoming process. The process could take a while, we have no idea till confirmation. I would always have 2 positions (trading on the basis of hourly/ 4 hourly charts and swining based on dialy charts) for this reason. I select 2 different instruments if I am in a bipolar mode. And often times, it does work well for me.

 

If you keep your risk under control, regardless of chops/ stops, you still emerge a winner in the annual horizon. Good luck to you!