Dear readers, we are getting closer and closer to the resistance for most stocks. Will price actions goes higher or be stopped in their tracks? Its anyone's guess, for now. Being nimble and flexible in these markets should pay well due to the huge resistance created by the huge drop a few weeks back.
I have entered a long trade a few days back. However I am looking to take some gains off the table and then ride the rest up with a trailing stop. In this volatile climate, rallies off shorts covering are very powerful.
Looking a the charts, trend traders have yet to cover their shorts. For those who are looking to short the market, we will need this group of traders to cover their shorts position before a good short entry materialize.
Let's take a look at the S&P500 daily chart.
Trend traders would be forced to cover their short positions at the 1200 level. If that happen, we could even see a powerful rally as high as the 1250 region (50 days MA). That will be a good short entry point if that scenario occurs.
Stay nimble, folks!
I have entered a long trade a few days back. However I am looking to take some gains off the table and then ride the rest up with a trailing stop. In this volatile climate, rallies off shorts covering are very powerful.
Looking a the charts, trend traders have yet to cover their shorts. For those who are looking to short the market, we will need this group of traders to cover their shorts position before a good short entry materialize.
Let's take a look at the S&P500 daily chart.
Trend traders would be forced to cover their short positions at the 1200 level. If that happen, we could even see a powerful rally as high as the 1250 region (50 days MA). That will be a good short entry point if that scenario occurs.
Stay nimble, folks!
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