Thursday, February 25, 2016

System Remains Short with 1950s Likely Ceiling

Swing System Trading
Current Position:Short from SPX 1938 on 2016-02-23
Indicator Divergences:Negative
Indicator Extremes:Neutral
SMA Setup:Very Negative
S/R Levels:20SMA 1899, gap/trend line 1900ish, 50SMA 1947, Fib 50% 1950s, Parabola/H&S 1950s, Fib 62% 1990s
Sentiment:Short-term Negative, Medium-term Positive
Important Events:N/A
Trade Plan:The gap area around SPX 1900 provided support as expected and the System took partial profits. The SPX also rallied from there in a retest of the 1947 high as expected. For now, negative divergences have developed, so the System will stay and reload fully short with a stop no lower than 1967. Those negative divergences are likely to remain if SPX slightly exceeds 1947, but the System will reevaluate at that time. Most System trades are made at/near the open unless a stop is reached intraday. A larger downtrend appears likely unless SPX can wear off the negative indicators by going sideways at 1900-1950 for a few days. Good fortune.



SPX/SPY Trade History
PositionOpenPriceClosePricePtsTotal
Short2016-02-231938????
Long2016-02-1218472016-02-231938+91+91


Chart from Monday

1 comment:

  1. Not sure where you get your sentiment data--but I would highly suggest using Sentiment Timing sentiment-they have the most accurate readings and turn dates around. Good work you are doing.
    https://www.sentimenttiming.com/category/free-reports/

    ReplyDelete