TYPE OF TRADE:
I am looking for a great setup that could form soon for a SHORT position.
CONDITIONS TO TRADE:
I will be looking for 2 specific conditions to enter into a short position
- This 2 year resistance holds and doesn't get broken...even by a wick.
- We close below the 50MA
Note: I have put 3 possible scenarios that could play out that would satisfy these conditions (don't look into the periods of them too much as I have drawn them roughly)
The reason why I am really excited about this potential trade is we are near the 2 year resistance and if we reject off it this could be the big move we have been looking for.
- We have had a surge in stocks around the world but what worries me are issues of:
-Supply chains being disrupted
-Could trigger more bankruptcies
-COVID-19 cases rising
-This is the original catalyst that has caused the unsteadiness of the markets
-Are we re-opening too soon...only time will tell
-Unemployment still rising
-What are people doing with their incomes?
-Housing prices and Banks health
-Nothing as of yet but the potential problem if housing drops and banks' security to people's loans becomes a risk for the banks.
I will continue to update this trade idea as we progress but please comment as I would like to hear peoples thoughts on my ideas.
Note: I have put a link to what my 50MA Trading Strategy is and what drawbacks and risks it has.
50MA is @ 9321 (as it doesn't update on the charts) currently
Will keep you updated.