Trading plan on chart. Need a break and retest of the $94 area before adding positions. Favoring a corrective wave to add new positions. Earnings season could be the catalyst to spike into an ending diagonal (pointed out on chart).
This could be one of the top sectors for 2021 but I'd like to wait for a pullback to add.
If you get anything from this post please...
reaching long-term upper bound on channel (2007)
Weekly RSI showing bearish divergence
weekly MA look like they might be turning over
Timeframe: 1 year-ish
continued inflation + seller pricing power
could go on for longer
This magical strategy works like a clock on almost any charts
Although I have to say it can’t predict pullbacks, so I do not suggest this strategy for leverage trading.
It will not give you the whole wave like any other strategy out there but it will give you huge part of the wave.
The best timeframe for this strategy is Daily, Weekly and Monthly...
Something happened this morning that I think is worth talking about - the official death of the categorical re-flation trade. Thanks Delta Variant and UMCSI!
Over the last eight months, there's been a lot of prognosticating about the state of inflation within the economy, coupled with fears that the Fed had gotten it wrong. Runaway Inflation was considered a key...
Entered 4/7/2021 15:33 at green arrow - back logging the trade, not at expiry yet
Higher timeframe trend is up
Price making weak tops and buyers defending the proximal demand zones
Price coming back into +1 sigma
At base of hourly demand
Potential buyers stepping in, enough to cause a time delay
77.50 sold strike is AT higher timeframe demand zone proximal...
FCX is on the a bullish run; however, I think the fuel will run out on earnings. The reason I'm slightly bearish on FCX is because XLB needs a drop to complete what seems to be the formation of a running flat Elliott correction wave. I cant time it perfectly but I expect a drop in XLB a few days before the earnings annoucnement of FCX.
If you like what you see...
In order to understand the market I rely on sectors. It's important to get a good read of each sector that relates to your stock of interest. Understanding the general direction of the market is easier than relying on indicators. No strategy is infallible, I just prefer to proceed accordingly.