Having covered the big picture analysis of the major markets around the developed world and concluding that we could be in process of witnessing significant top being formed that could result in major fall that might retest 2009 lows in due course.
With that back ground we could start to look at possible short opportunities in individual stocks or broader indices. Trading Indices takes a way the company specific risks and reduce the need to carryout extensive analysis monitoring and managing the trades. The flip side being that we can also miss some dramatic moves which some times do happen on individual stocks but there is a trade off.
Please see the video:
Link - www.danv-charting.co...jf57mpiIHEVPMih.html
So we could be on the high alert now to start looking for suitable trades using SPY which is and ETF (Equity Traded Fund) for S&P500 tracking its move.
Here are the summary of technicals:
1. We have several time and Fibonacci symmetries identifying that on a larger scale we are at the upper end of the topping zone, with tops being firmed in Mid 2015 and several momentums indicators appearing to confirm the bearish development .
2. Whilst the wave counts for initial decline from those tops is yet unclear, it is suggesting that we could be headed to decline to 1800 as our initial targets offering decent trade potential.
3. We have retraced 78.6% of the last drop and have come into close proximity of the declining short term trendline.
4. On daily chart we have MACD histogram divergence and RSI at over bought region.
5. The last bounce appears to be a double zigzag with final price action forming a small rising wedge which is near complete.
Action:
a) Consider taking short position with PUT Options as follow:
1. Spread - Buy Sept 2016, 178 PUT and Sell 170 PUT for approx $1.0
2. Buy Jan 2017, 110 PUT for $0.55 OR Jan 2017, PUT for 125 for $1.0
Warning: This is my interpretation of price action using TA approach that I consider helps me the most but could be completely wrong. Therefore as always, please do your own analysis for your trade and risk management. You should follow this on Paper Trading Account till you feel confident to apply the skill to a live account.
DanV
danv-charting.com
With that back ground we could start to look at possible short opportunities in individual stocks or broader indices. Trading Indices takes a way the company specific risks and reduce the need to carryout extensive analysis monitoring and managing the trades. The flip side being that we can also miss some dramatic moves which some times do happen on individual stocks but there is a trade off.
Please see the video:
Link - www.danv-charting.co...jf57mpiIHEVPMih.html
So we could be on the high alert now to start looking for suitable trades using SPY which is and ETF (Equity Traded Fund) for S&P500 tracking its move.
Here are the summary of technicals:
1. We have several time and Fibonacci symmetries identifying that on a larger scale we are at the upper end of the topping zone, with tops being firmed in Mid 2015 and several momentums indicators appearing to confirm the bearish development .
2. Whilst the wave counts for initial decline from those tops is yet unclear, it is suggesting that we could be headed to decline to 1800 as our initial targets offering decent trade potential.
3. We have retraced 78.6% of the last drop and have come into close proximity of the declining short term trendline.
4. On daily chart we have MACD histogram divergence and RSI at over bought region.
5. The last bounce appears to be a double zigzag with final price action forming a small rising wedge which is near complete.
Action:
a) Consider taking short position with PUT Options as follow:
1. Spread - Buy Sept 2016, 178 PUT and Sell 170 PUT for approx $1.0
2. Buy Jan 2017, 110 PUT for $0.55 OR Jan 2017, PUT for 125 for $1.0
Warning: This is my interpretation of price action using TA approach that I consider helps me the most but could be completely wrong. Therefore as always, please do your own analysis for your trade and risk management. You should follow this on Paper Trading Account till you feel confident to apply the skill to a live account.
DanV
danv-charting.com
