S&P 500 Visual Trading Update
General Notes:
They say that volumes, for all assets in the financial markets, dropped like
a stone yesterday, when Tiger woods revealed everything about his private
life. Well, it tells you how the financial world can be influenced these
days...
On a more serious note: Everybody is waiting for Bernanke to speak, as if,
he will reveal to us its real intentions. The FED is a reactive body, and it
can be seen clearly by a chart of the 3 month T-Bill compared to the FED
moves. You will notice that the FED is always the following one, and the
market is the leading entity.
So, what does it tell us? That maybe, and I say maybe because they are so
many pundits out there, that think that the FED is such a
brain-storming-all-solving entity, the market will move short term rates
higher, and force the hand of the central bankers.
Maybe it will be in the Euro Land, before the US and Japan, and maybe the
whole sovereign debt problem, combined with the need to raise so much
capital, for closing the deficit gaps, will eventually creating a chain of
events, that will take the control from the FED and its colleagues.
And maybe the moves in the EURO, are just what is needed before the Spanish,
Greeks, Irish bonds issuances? and not only a technical rebound from an
oversold situation? We really don't know. Just a thought.
Current Trading Plan:
Position: OUT
Last (04-01-2010) Closed position @ 1082 (+$0)
Long: --
Short: Below 1100
Exit by Stop Loss: --
Technical Indicators Notes:
Last time we said: "After we told you how impressed we were about the
converging of the fundamentals and technicals, the market decided to show us
that it wants to baffle us a bit more, and move beyond the 61.8% area. "The
invisible hand"? "Plunge protection team"? Investors that thought the market
is cheap? We do not know. The fact is that the index is now back in the
RSI-STOC overbought areas, and the ascension is steeper than before.
Remember: 1150 is the only place that we will have a confirmation about
being really wrong on our bearish view."
Another resistance break up, tested and moved over. Although the whole move
is a text book up trend, it is starting to look tired. Look at the needle
candle work! No real resolution to buy at these levels... The Daily chart
looks a bit better, and is telling us that maybe the 78.6% is the target for
this move. In any case, we bet on this, as a correction, and so we followed
it, for a long time, to enter on the SHORT side. Moving the entry level a
bit higher.
Charts Legend:
In Price Window:
Simple Moving Average (20): Green
Bollinger Bands (20,2): Violet
Support & Resistance price areas: Pink and Light Green areas
Trend lines and Channel Boundaries: Blue
Elliott Waves Counts: Black and Blue numbers
In Indicators Part:
RSI (10): Blue, STOC(5,3,3): Green, ATR(5): Blue
MACD (12,26,9): Blue, Signal: Red, Histogram: Green
Indicator trend lines and effects: Magenta
Signals:
Long: Above the Green line
Short: Below the Red line
Exit position: On crossing the Cyan line
SL in case of triggered level: Dashed Cyan Line
---
CFDs trading analysis written by Moshe Shalom for CFDsPros.com.
---
Disclaimer
Trading Futures and Options on Futures and Cash Forex transactions involves
substantial risk of loss and may not be suitable for all investors. You
should carefully consider whether trading is suitable for you in light of
your circumstances, knowledge, and financial resources. You may lose all or
more of your initial investment. Opinions, market data, and recommendations
are subject to change at any time.
General Notes:
They say that volumes, for all assets in the financial markets, dropped like
a stone yesterday, when Tiger woods revealed everything about his private
life. Well, it tells you how the financial world can be influenced these
days...
On a more serious note: Everybody is waiting for Bernanke to speak, as if,
he will reveal to us its real intentions. The FED is a reactive body, and it
can be seen clearly by a chart of the 3 month T-Bill compared to the FED
moves. You will notice that the FED is always the following one, and the
market is the leading entity.
So, what does it tell us? That maybe, and I say maybe because they are so
many pundits out there, that think that the FED is such a
brain-storming-all-solving entity, the market will move short term rates
higher, and force the hand of the central bankers.
Maybe it will be in the Euro Land, before the US and Japan, and maybe the
whole sovereign debt problem, combined with the need to raise so much
capital, for closing the deficit gaps, will eventually creating a chain of
events, that will take the control from the FED and its colleagues.
And maybe the moves in the EURO, are just what is needed before the Spanish,
Greeks, Irish bonds issuances? and not only a technical rebound from an
oversold situation? We really don't know. Just a thought.
Current Trading Plan:
Position: OUT
Last (04-01-2010) Closed position @ 1082 (+$0)
Long: --
Short: Below 1100
Exit by Stop Loss: --
Technical Indicators Notes:
Last time we said: "After we told you how impressed we were about the
converging of the fundamentals and technicals, the market decided to show us
that it wants to baffle us a bit more, and move beyond the 61.8% area. "The
invisible hand"? "Plunge protection team"? Investors that thought the market
is cheap? We do not know. The fact is that the index is now back in the
RSI-STOC overbought areas, and the ascension is steeper than before.
Remember: 1150 is the only place that we will have a confirmation about
being really wrong on our bearish view."
Another resistance break up, tested and moved over. Although the whole move
is a text book up trend, it is starting to look tired. Look at the needle
candle work! No real resolution to buy at these levels... The Daily chart
looks a bit better, and is telling us that maybe the 78.6% is the target for
this move. In any case, we bet on this, as a correction, and so we followed
it, for a long time, to enter on the SHORT side. Moving the entry level a
bit higher.
Charts Legend:
In Price Window:
Simple Moving Average (20): Green
Bollinger Bands (20,2): Violet
Support & Resistance price areas: Pink and Light Green areas
Trend lines and Channel Boundaries: Blue
Elliott Waves Counts: Black and Blue numbers
In Indicators Part:
RSI (10): Blue, STOC(5,3,3): Green, ATR(5): Blue
MACD (12,26,9): Blue, Signal: Red, Histogram: Green
Indicator trend lines and effects: Magenta
Signals:
Long: Above the Green line
Short: Below the Red line
Exit position: On crossing the Cyan line
SL in case of triggered level: Dashed Cyan Line
---
CFDs trading analysis written by Moshe Shalom for CFDsPros.com.
---
Disclaimer
Trading Futures and Options on Futures and Cash Forex transactions involves
substantial risk of loss and may not be suitable for all investors. You
should carefully consider whether trading is suitable for you in light of
your circumstances, knowledge, and financial resources. You may lose all or
more of your initial investment. Opinions, market data, and recommendations
are subject to change at any time.