Considering my short term technical system suggested a “sell” on $SPX at 11:46 a.m last Friday morning….things look to be playing out much as they do with my currency trading.
As suggested – the signal ( first seen on Wed) allows for an additional period of time, for additional criteria to be met – and “guns a blazing” – confirmed on Friday.
Keep in mind that this “short term signal” only comes into play when several “large term signals/ criteria” have already been met on even higher time frames so….
So what next?
Now I wait….and watch closely if even greater opportunity presents itself – for example, an even larger push higher. As with my staggered (buy/sell around the horn) order entries with currencies – anything above the levels of around 1632 in $SPX “can provide” for even better selling opportunities if one chooses to make decisions outside the technical system.
I’m assuming we get a bounce in both USD as well U.S equities perhaps into Thurs, before momentum again shifts steadily to the downside.
Correlation wise – this should also provide for a lower JPY and even better opportunities to enter again LONG as risk makes a final push.
Again I do invite any and all to view / commment and follow along.
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I think the Merkel Elections in September have the potential to be a gamechanger.
Absolutley, as it lines up pretty perfect with me on a technical level as well fundamental.
Off the top of my head ( as things are moving pretty much as planned ) USD bounces out of its “landslide” here over the summer, and EUR falls hard on the turn in Sept centered on the election result implications being the big headlines.
So through the summer dollar up and market up ? Thanks Kong.
No the opposite big time….summer down USD down..markets down.
Sept USD up…markets – flat at best…..and down more.
whats your time frame on this trades and would like to know what are you targeting as your exit. For spx are you playing it through options ???. Please educate us on instrument you are trading.
Thanks again and like your blog a lot.
Bill I trade currencies – via a forex trading account…as far as $spx fun goes…..I’ve simply placed sell orders in SPY at 159.50 but will likely move that higher as this current “pop” peters out.
Bottom line though – I would consider adding short on anything mving higher, as I see this as literally “it” for U.S equities in coming days.