Expectations, For The Week Ahead
Summarizing trading actions for the week and the action plan, going forward.
Currently there are two open positions: details below.
Short the Chinese FXI via YANG (not advice, not a recommendation)
Enter YANG @ 10.95, with current stop @ 10.89
Friday’s close @ 14.05, Open profit = 28.3%
FXI, 3X Leveraged Inverse, YANG, Daily
Shown above, YANG appears to be in a trading channel (grey lines).
As a result of moving decisively higher (FXI, lower), the stop on the position is to be moved to YANG 12.79 (not advice, not a recommendation) at the next trading session.
Short the biotech SPBIO via LABD (not advice, not a recommendation)
Multi-entry LABD @ 28.11 (combined), with current stop @ 26.57
Friday’s close @ 26.98, Open loss = – 4.02%
SPBIO, 3X Leveraged Inverse, LABD, Daily
Last week contained both record daily volume (since inception) for LABD, as well as record weekly volume.
Downward thrust energy has dissipated. The down-move appears to be exhausted.
Supporting the assessment LABD is at or near a pivot point (reverse higher), we’re going to review the 3-Day chart.
SPBIO, 3X Leveraged Inverse LABD, 3-Day
Note, there is one more trading session (this Monday) needed to complete the current ‘3-Day’ bar.
First, we can see downward thrust dissipating as on the daily chart.
The prior three-day bar is identified as ‘Ease of Movement’.
It’s the first bar in the entire down-sequence starting on 6/14, where upside action was able to penetrate the prior (3-Day) bar’s high.
That’s an indication of demand.
After upside penetration, price continued lower.
However, here’s the important part, LABD, closed higher and posted a higher low when compared to the prior 3-Day bar; subtle clues a reversal may be in the works.
There’s one more trading session needed to complete the current 3-Day bar and anything can happen.
However, based on the analysis thus far, it’s reasonable to expect LABD, to continue to post higher; that we’ve reached the extreme of downside action.
The 3-Day below shows the higher lows and includes a zoom of the area.
Adding to the reversal case, on a weekly close basis, SPBIO reached underside resistance during the week of 7/8. This week just past, it closed slightly lower (chart not shown).
It’s the weekend and so we have the usual suspects of bad news … any of which could be the butterfly in the amazon, the final upset for the markets.
Just a brief list of current events, below:
Texas cattle being dumped on the market
Locomotive workers may go on strike
Child size coffins ordered in bulk.
Charts by StockCharts
Note: Posts on this site are for education purposes only. They provide one firm’s insight on the markets. Not investment advice. See additional disclaimer here.
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