The US market could have a few interesting days between now and mid September.
I would not be surprised if we have a few days up and then a pullback to just below yesterday's Low - to around the 4300 area.
From there, hopefully, it will recover and give us a good trade opportunity.
I am attaching a chart of the US Cash (S&P) where you can see the last 10 trades as well as what to look for when the next opportunity comes up.
But, to make it easier, as the chart may not be easy to read, here are the rules:
S&P - Daily
50 and 100 MAs
You trade this Index LONG ONLY.
1- The 50 AM is above the 100 MA
2- Wait for the Index to Close Below the 50 MA (it can go all the way down below the 100 MA, but the important thing is that it must have Closed below the 50 MA
3- Then the Index moves up and it Closes Above the 50 MA. All of this on the DAILY chart.
Entries:
(i) Buy the next day at Market
(ii) Stop Loss - 50 points
(iii) Take profit - 100
Trade management:
- as soon as the day on which you placed the trade Closes, you move the Stop Loss to Break Even if the trade is in profit. From there onwards, you let the market to its thing.
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Since June 2020 there have been 10 trades, with 9 of them winners (900 points profit) and one looser (50 points), giving a Net Profit of 850 points. Based on a $10- standard contract, this would be around $8,500- profit. Naturally, some of you have deep pockets and would play much bigger amounts e.g. $100- per contract, giving you a profit of $85,000-.
Another interesting observation is that the S&P is the biggest Index in the world, with very large liquidity and quite reliable.
Ok, we've had a fabulous uptrend for a good while but, if you check the S&P, this is quite a common occurence and these sort of profit opportunities have been there for a very good while.
(20min delay)