Feb 4, 2013

Short term update

Short at SP500 1503...
The odds are good - bearish candle formation which means high probability that Friday was an exhaustion bar,RSI and histogram divergences, the histogram moved bellow zero, MACD divergence on the hourly chart, the price is bellow EMA50 on the hourly chart.
Confirmation is daily close bellow 1496...

6 comments:

  1. krasi, what vehicle are you using to short? Spxu? Sds?

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    1. I trade CFDs DAX sometimes DJ. I am in Europe and it is easier for me because of the working hours. The exchanges in the USA open at 16:30 and close at 23:00 - my local time. SP500 is probably the most watched index that is way I am posting the signal, it came at the same time for DAX and SP500 around one hour before the opening in NY.

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  2. Krasi, do you think wave 4 down has begun?

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    1. I do not think that this is wave 4 but what ever wave this is, I think it has begun.
      I do not expect to see better signals, so the signal is good enough to try short trade for 2-3 weeks.

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  3. Where should the stop be placed at if short from 1503?

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    1. The stop is above the high of the candlestick formation at 1515. If SP500 moves lower the stop will be moved lower too.
      If you see that it takes too long for the index to move lower, you can exit earlier. If a move has really started in worst case it should make a pause for a day or two but that is all.

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