Short Sell Positions

As per the Shooting Stars I discussed last week, they were the warning of the top end of the global stock markets and since then, global stock markets have pulled back in a major sell off starting yesterday.

Taking short (selling) positions in the DAX, FTSE and S&P 500 indices have reaped some very good returns already. We are taking profits at this point or at least moving stops into profits and closing half the position.

A number of opportunities will present themselves for short term traders or swing traders early next week once the pull back consolidates and then begins the next bull wave.

However, if certain critical levels of support are broken today then there is likely an extended sell off in the short term as the dollar strengthens in the very short term.

Stock markets around the globe are feeling the pinch as the dollar gained strength and forced commodities across the board to cool off. This provides an excellent opportunity to short term traders to be able to take short positions, but preferably with entries yesterday.

This dip in the global stock markets and commodity prices also provides an excellent swing trade opportunity to go bullish again in the next wave. Timing is important and should be considered only after hammer candles present themselves.

Watch the dollar for any weakness at resistance levels. Keep an eye out for support levels on the right levels.

Best trading this quarter.

Trading Mentor.


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