I'm not going to take this trade, as I am allready short the Nasdaq, CME and long Gold, and I think it's enough.
The correlation between the overall market and the GM Company alternates. It switches from long periods of correlation to long periods where they move in different directions over the weekly charts but swing together on the daily chart. Last months there was a strong decorrelation. The S&P is close to its all time highs, but where is GMC?? This is a clear sign of weakness.
The weekly chart of GMC shows weakness too, notes are on the chart :
On the daily chart, there is a return to the Wave, a falling histogram and a divergence on the sensitive 2 day FI. Volume was very light during this rally.
Even though I won't be trading this, I will set up a trade plan so I can fully review this later.
1 - Get long tommorow at the best price possible, below 35.30.
2 - Set a stop at 35.90.
3 - After a close below 33.50, move stop to breakeven.
4 - Take some profits at 31.80. Move stop above 33.50.
5 - Take more profits at 30.40.
6 - Keep a small part of the position with a stop under the closest daily swing high, targeting 27.
7 - Add only under 31.80.
The correlation between the overall market and the GM Company alternates. It switches from long periods of correlation to long periods where they move in different directions over the weekly charts but swing together on the daily chart. Last months there was a strong decorrelation. The S&P is close to its all time highs, but where is GMC?? This is a clear sign of weakness.
The weekly chart of GMC shows weakness too, notes are on the chart :
On the daily chart, there is a return to the Wave, a falling histogram and a divergence on the sensitive 2 day FI. Volume was very light during this rally.
Even though I won't be trading this, I will set up a trade plan so I can fully review this later.
1 - Get long tommorow at the best price possible, below 35.30.
2 - Set a stop at 35.90.
3 - After a close below 33.50, move stop to breakeven.
4 - Take some profits at 31.80. Move stop above 33.50.
5 - Take more profits at 30.40.
6 - Keep a small part of the position with a stop under the closest daily swing high, targeting 27.
7 - Add only under 31.80.