Friday, April 20, 2018

Trade Less To Make More Money

A good post from on how overcome overtrading. The suggestions:

1. Every weekend analyze your markets and create trading plans.
2. Identify the most important price levels for the week ahead.
3. Set your price alerts at those levels.
4. Wait for price to get there without watching the market.
5. When your price alert goes off, check the chart and evaluate whether you have a trading entry or not:
    a)  Yes? Great, enter the trade.
    b)  No? Set yourself a reminder to check back in a few hours or take the instrument off your watchlist if price movements made your trade idea invalid.
6. Let the set and forget approach do the rest for you and don’t interfere with your trades again.

Sunday, April 15, 2018

Week Ahead 16

Equities bumped into a resistance at the end of the week. Friday afternoon the breakout attempts were rejected for the time being. Market reactions on the Syrian airstrikes on Monday morning could be muted due to the lack of details on potential Russian retaliation. Though, sentiment could change quickly due to new developments.

The US 2y yield closed at monthly high flattening more the curve.

German spreads are near monthly lows.

Oil heavy commodity index in a breakout mode following WTI price action.

On Wednesday it seemed that bullion will be breaking out, but on Thursday a daily bearish engulfing wormed.

Dollar index back into the range after forming a double top week before.

Monday, April 9, 2018

Week Ahead 15

On Friday it looked as if SP500 was about to break the 200DMA but most probably the short covering pushed the price a bit up at the end of the session. We are still at key resistance levels. If we break the 200DMA we still have the February low as strong support. The double top at a lower high makes the technical picture weak. It is also important to point out that we could not even retest the previous resistance around 2770.

DAX technically looks better than the US peers. The Wednesday bullish pin bar is still in play as on Friday it did much better. Though we still have lower high and lows. 

On Friday the bond market was quiet relative to equities that might suggest that stocks a bit overreacted the latest news on trade war.

Commodities were almost unchanged last week.

Oil price action on Friday points to the more downside.

Agriculturals did relatively well despite the potential trade war impact on US demand.

Gold is still in the middle of the range it had entered at the end of the last year. It has formed a weak support last week.

DX is at the strong resistance area.