SPY 25 may 2018

While the price is stuck in a trading range for a week, the stochastics are making lower highs.

Still the price above the ema(21) is kind of bullish, let’s keep our focus in the box, remember if the reaction is on the down side, those moves are quick.

Shalom alle,

La situación de los mercados hoy a media mañana

Esto es lo que se puede definir como un campo minado para los cortoplacistas, el SP500 con una serie de close contrarios a los open del día, por 8 largos días se empeña en no mostrarnos dirección haciendo muy pero muy difícil el trading a corto plazo.

El Dow Jones actualmente hizo un nuevo high el 21 de mayo, para casi inmediatamente devolverse, un verdadero bull trap. Ahora mismo está coqueteando con su low del 16 de mayo.

El Russell no encontró resistencia desde el 15 de mayo a diferencia de los big caps que estaban sumidos en un trading range. Ha formado 2 areas de soporte-resistencia bien definidos.

En estos tipos de mercado es que los cortoplacistas somos castigados, vamos a ver si se aclara la dirección, sin embargo, cuando los diferentes mercados están en desarreglo por lo general el mercado se “arregla” hacia abajo.

Gracias Dios por tus bendiciones

Shalom all,

The perks of being a short term trader

In my last post on April 25^th I mentioned being long WEC because it was “accumulating”, this is what happened the following days.

WEC broke in an uptrend that took it past my 63.5 target to a close of 63.71 3 days later.  Of course I took my 1% plus profit.

Then WEC “distributed” for five more days, still plenty of time to take profits.

After that this happened with WEC stock, it went down and now is trading below my entry point. Now, being a great company, WEC will start at some time going up again, but before that, if I had not take my profits,  I would be looking for some time at losses in my brokerage account, and that is really a loss of confidence factor for a trader.

But that was then and this is now

Remember your technical analysis 101, the phases, accumulation, distribution etc., sometimes distribution is not followed by a decline, instead we thought it was distribution but really it was a new accumulation phase, well, right now for the past 4 days the market is either accumulating or distributing, who is to know?, the important thing is to react when we know.

For that I have two ideas that can be either accumulating or distributing, look for the breaks and act accordingly.

Thanks God for all the blessings

Shalom all,