Following up from my last post, the S&P 500 has been halted within the uptrend channel, once again maintaining the integrity of the channel. While the sentiment of the uptrend is not exactly at the stage of exuberance, it is still strong nevertheless, creeping up slowly and steadily. This means that it has a good chance of heading for the next level of resistance.
This is a good example of the “trend play”, one of the seven setups which I will be covering in tomorrow’s free seminar. I will also be giving an outlook on the Singapore markets, so do drop by tomorrow after work if you’re free! https://synapsetrading.com/the-synapse-program/preview/
The cheetah, while the fastest animal on the African plain can outrun any of the prey it feasts upon, always chooses to go for the young, weak, or sick. Once identified, he attacks with laser-guided focus and effectiveness. It is only then that the kill is likely. This is the epitome of a professional trader. Be the cheetah.
Here are some common questions I get from people:
“Sometimes I can’t find good setups in the market, should I trade the less optimal setups or should I look for more different stocks to trade?”
“The setup I learnt from xxx course was working fine a few months back, but it doesn’t seem to be working now. Should I continue using it?”
So, how do we go for the kill?
As cheetah, we should always go for the easy trades. But quite often, for the newbie, the easy trades are staring them right in the face but they do not see them. This is because they are only familiar with a few simple setups (with simple rules/formula) that work best only under specific market conditions.
All these questions have a common theme. Traders who learn one or two simple setups think that they can trade successfully, but when the market changes, quite often the simple setup or system that they are using cannot adapt to the market, and becomes discarded.
Hence, a good trader cannot keep relying on the one same setup. Rather, he needs to know the basic form of a setup, so that from there, he can create a wide variety of different setups that are best suited to the current market situation. That is why we teach a variety of setups (and certain proven variations), leaving them the core skills to tweak setups to adapt to any market situation.
https://synapsetrading.com/wp-content/uploads/2019/10/logo.jpg00Spencer Lihttps://synapsetrading.com/wp-content/uploads/2019/10/logo.jpgSpencer Li2012-09-25 04:29:022022-03-09 12:20:27The Cheetah and the Trader – How to Go for the Kill
For the past few weeks, I have been rather bearish on the US indices, expecting them to stop the ascend at their respective key resistance levels. However, a major news catalyst (QE3) has changed all that. With the new tweak in money supply, and the added confidence (real or perceived is debatable), we could continue to see the market drift upwards till the elections in November. There is also likely to be “words of encouragement” by the leaders to prod the market in the right direction.
Hence, the reversal could instead occur at the next resistance levels, which would more likely coincide with the end of the elections. This is not a forecast, merely a guess. At this point, I would look to buy on a weak pullback, or be ready to short if I see a sudden strong breakdown of the bulls.
There was some flurry earlier in the afternoon around 4pm when rumours when drifting of a rejection to the proposal, which cause an initial spike down in the EUR/USD. This spike would have made many people panic (even if for a second), and taken out most stops, including mine.
When the price whipped back a few minutes later, most people were still in shock and thus slow to react, or were too busy cursing their luck. I wasn’t sure about the news at that time, but I could see that the bulls had gained control and the bears were now trapped. I immediately went back long.
Looking at strong bullish sentiment over the past few days, it is very likely that most players are gunning for the psychological round number of 1.300, which we might hit by the end of this week.
After the inverted H&S breakout, the EUR/USD has trended up strongly, going past my original first target of 1.26, and even reaching 1.28. From here, I am bullish in the medium-term, and will continue to trail my stops to maximise my profits. Prices may head down to test the head of of the inverted H&S before heading to make new highs, or it may just pullback to the area of the EMA. Either way, I am expecting bullishness. https://synapsetrading.com/eurusd-holding-longs/
