S&P – Daily Chart Update

Hi Everybody,

I just wanted to update you all on the current TS4 long in the S&P form the Jul 8 low.

As you can see, this nailed the very low of Jul 8, and since then the S&P has rallied strongly. We have now reached the first profit target, so should start to protect any longs.

Thanks

Steve

YM on Jul 23 part 2

So the question was whether to take this DP sell or not ? On the surface this was a good looking DP as it was on a high volume (VSA) bar as well as stochastic divergence. BUT, and here is the big question, it was “against” the larger degree up trend. So my normal advice is to be very carefully (particularly on DP’s) when they are “against” the larger degree trend.....

The only thing that it had going for it was that it was towards the end of the day, on a day where there was a big up move in the morning, so it would be natural for some “profit taking” to come in and push the market lower towards the end of the day.

So my advice would be to avoid trades that are “against” the larger degree trend, and then and only if you are an advanced trader should you consider them. But even if you do, protect yourself quicker as you know you are against the larger degree trend. In this example it would have probably been a break-even trade anyway as the 100% initial risk was just reached. So (in this example) it did not really matter whether you passed on the trade, or took it and got stopped out for break-even.

Thanks

Steve

YM on Jul 23

Hi Everybody

I received a few question on the YM 3min for Yesterday, so I would like to take a quick look.

The day started with a nice TS3 buy that unfolded late morning. This was a standard setup that was managed using the WPT targets as the STF was weak. As you can see a nice +3R Profit (ignoring slippage and commission) was available as the YM drifted higher as the first projected profit target was reached.

So this setup was OK, because it was “in the direction of” the larger degree up trend, but the main question was on the DP sell later in the day, next post.

Thanks

Steve