Closed second third crude oil since hourly not showing strong demand.
The new short is interesting, price is not really plunging as it should if it was a real rejection of the channel upper limit. Price is just not heading lower and it appears that buyers are coming in supporting price making a higher low. Currently price is in an hourly range and I will take 1/2 out if we break higher.
This forced improvisation is making me realize the importance of adding to my plan a set of rules in what to do when I enter but price just sits there for days not really heading my way. I will be studying my charts in orther to establish the most beneficial rules.
Another thing about this new short is that it is contrary to the major trend and hence carries more risk, as per my plan I look for setups that are in harmony with the most recent weekly trendline, this is also something I will be back testing.
I am also looking at a new entry in mc ewen mining (MUX) long if we make a new high at 3,31.
Long crude oil 1/3
Long t bond 1/3
Long euro 3/3
Short nq 1/2
Looking back at gold, the weekly trend is up on the daily price cleared the most recent resistance at 1260.
I am potentially seeing current action as a retrcement and will go long if we break above yesterdays high. This is a setup that I haven't tested as much as the standard reversal and I a entering at the trough of the retrcement so I am using a lower size and smaller stop.
Am considering a short in Gold also but what I would really like too see is a false breakout sucking in longs and taking out the stops of shorts in the 1236 area a quick breakout and then a return to below resistance and I would definately go short, but probably not without that kind of move first
NQ broke daily trend line last week and now retracing. Hourly chart is forming a lower high, my standard entry of hourly break of dl and lower high. I just placed an order so if there is a lower low I will enter short.
I am apprehensive about this trade since I am trading against the weekly uptrend, also last two times I shorted the nq I took one loss and one scratch. My conclusion was the danger of trading counter trend.
On the other hand, long technology is the most crowded trade out there and The Economists cover last month seems like a bad omen for tech stocks. Hence I am entering this order with more confidence, albeit reluctantly since my system ordinarily looks for setups in harmony with monthly and weekly trends.
There is also the case of entering from the hourly, perhaps prematurely without allowing for the daily retracement to run its course. But up till now, the only way I have found to define accurately and objectively a RET is by using break of demand lines, lower highs and lower lows on the hourly chart.
Unsurprisingly, the Nq short was triggered yesterday as per my rules and I sold the low of the day, after which price rocketed and stopped me out.
There is no sign of buying exhaustion so far and Europe is very undervalued relative to us stocks, the Dax making and holding new highs, hence I have shifted my focus towards Germany, and I will be buying Deutsche Wohnen if price makes a new daily high. It is a growing company, with low pe and looking to make new all time highs, seems like the ideal candidate to buy in such a strong up trending market.
Technically, it is forming a springboard of sorts at a previous high which allows for a tight stop loss below the springboard. Order entered, waiting to see if price breaks to the upside.