S&P Analysis Week of 10/04/2020: Will Market's Tank or go Higher
As usual, I like to keep my charts as simple as possible. My last two weeks have been spot on and I was able to make some nice profits.
This week I'm keeping it even simpler. I do NOT try to predict the markets. I take the high probability trade setups the market gives me.
I'm waiting for either a breakout above the diagonal trend line (with a retest) and then resumption off, OR a breakdown below the critical support line (with a retest).
I'm not really sure how Trump's COVID hospitalization will affect the markets so I'm no even going to try to predict. However, I know a lot of people went short on Friday and kept their positions open over the weekend. The market loves to do the opposite of the masses.
"When it feels really wrong, it's probably right. And when it feels really right, it's probably wrong."
Good luck.
This week I'm keeping it even simpler. I do NOT try to predict the markets. I take the high probability trade setups the market gives me.
I'm waiting for either a breakout above the diagonal trend line (with a retest) and then resumption off, OR a breakdown below the critical support line (with a retest).
I'm not really sure how Trump's COVID hospitalization will affect the markets so I'm no even going to try to predict. However, I know a lot of people went short on Friday and kept their positions open over the weekend. The market loves to do the opposite of the masses.
"When it feels really wrong, it's probably right. And when it feels really right, it's probably wrong."
Good luck.
Trade active:
Technically price broke out and retested the top of the diagonal trendline. I went long with a stop loss at 3340. This looks like a decent setup.
Comment:
Set my stop loss to break even, so I'm in a free trade. I'm up 20+ points on the SPX500
Trade closed: target reached:
I reached my target on trade setup 1. Closed my trade (I don't like melt ups). I made a nice healthy profit.
Comment:
I cashed out profit just in time for the huge reversal at the end of the day. Technically the market came back again to test the breakout of the triangle.
Regularly, if the next bar started was green, that would again be a buy signal but I am staying out until things are a bit more clear. Perhaps a closed green 8 hour candle with a higher high after could be a buy, but that could still be risky.
I may do another chart for the second half of the week.
Otherwise, this trade idea is complete.
I anticipated this week would be choppy/whiplash.
Be careful out there
Regularly, if the next bar started was green, that would again be a buy signal but I am staying out until things are a bit more clear. Perhaps a closed green 8 hour candle with a higher high after could be a buy, but that could still be risky.
I may do another chart for the second half of the week.
Otherwise, this trade idea is complete.
I anticipated this week would be choppy/whiplash.
Be careful out there
