US Dollar, Index, and an interesting pattern to watch.
As we prepare to trade 2019, there are themes and patterns that are in play.
As we prepare to trade 2019, there are themes and patterns that are in play.
This rinse and repeat trade has worked well for me the last couple weeks, and I think it’s about time to look for levels to short this sector again. While I recognize it’s still an aggressive trade, I started nibbling today. Check out the video for trade parameters.
We’re in a tough spot in the indexes, primarily because we haven’t rallied enough to give us an edge on most shorts, but aren’t in a great buy spot either. I am starting to gain some short exposure in areas such as XLC, FB, NFLX, TTWO and LOW, while continuing to trade relative strength players to the long side in a conservative manner. Let’s look at SPX, XLK, XLV, UNH, COST and AMZN.
Gold has seen an excellent run higher, but we should be getting into some technical resistance soon. Let’s look at one way to play sideways to lower prices and which options might be best for that.
The Santa Rally came through right on cue, but with a weak close on Friday, is this something we can look to for continuation? These are the levels I’ll be watching for the last day of the year and some thoughts on trading around them.
Once you understand where price action is along the sentiment line, directional bias gets simpler.
Short U.S. Short Europe. These are plays that are still in the early stages with more to come. Here is how to play it…