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.
Stock Market Investment Workshops, ebooks & financial freedom @ http://www.newsweek.co.za
Visit Aurora Global Markets for Global trading platform in equities, foreign exchange, commodities, precious metals and interest rates.
Showing posts with label global markets. Show all posts
Showing posts with label global markets. Show all posts
Friday, January 22, 2010
Thursday, November 19, 2009
Global markets at resistance
"Global markets at resistance" was the main heading for my recent issue of Stock Market Outlook, a trading newsletter I write for a club membership database on a weekly basis.
This weekly investment newsletter and trader's update focuses on the global indices, global commodities and then local stocks in South Africa as well as the Resources index and FINDI index.
I spoke about trading KUMBA Iron Ore last week Monday when it opened at 23200 and ended up at 26600 yesterday. Only 8 days to achieve over 10% return! That's no playing around! It's also not geared either. My medium term target for Kumba is 32000.
I was long of S&P 500, Wall Street and DAX last week to close near the highs of the top of the channels on these indices.
This week, the focus was off the stock markets and onto gold again. After sitting on $1000 it rallied back to my target of $1150within a very short space of time.
Now I wait for the global markets to settle at or near their support levels on the channel. Once this happens which should be by early next week I will be taking short term trades in the stock market again.
As the dollar weakens, commodities will rise. It is a patient game waiting for the dollar to turn, find resistance in its decline and then continue its downward movement. It is the opportunity to take longs on commodities again and stocks that mine those commodities.
It's fascinating but there's always something to learn.
Short term trading is't all its cracked up to be. People have a romantic disbelief about how exciting it is. The reality is that trading is mostly boring and repetitive.
It's a great hobby for retired persons and people who have wads of money. It is NOT for someone trying to replace their job.
Some people however, can find the happy medium of having a job and being patient while waiting for the trades to come. Building confidence in their trades but also mental discipline. Lastly growing their portfolio size over time like a professional golfer.
Support levels on the S&P 500 are 1093 in the short term. For the DOW it be 10100. The DAX is around 5400. KUMBA support is 24900 but could extend to 24400 odd intraday before closing on a hammer candle formation as example.
Watch the dollar. Keep an eye on the Baltic Dry Index. Copper is also a good early indicator as prices start to edge up.
Have a great trade,
Warrick
Financial & Investment Workshops, ebooks & financial freedom @ NEWSWEEK
Visit Aurora Global Markets for Global trading platform in equities, foreign exchange, commodities, precious metals and interest rates.
This weekly investment newsletter and trader's update focuses on the global indices, global commodities and then local stocks in South Africa as well as the Resources index and FINDI index.
I spoke about trading KUMBA Iron Ore last week Monday when it opened at 23200 and ended up at 26600 yesterday. Only 8 days to achieve over 10% return! That's no playing around! It's also not geared either. My medium term target for Kumba is 32000.
I was long of S&P 500, Wall Street and DAX last week to close near the highs of the top of the channels on these indices.
This week, the focus was off the stock markets and onto gold again. After sitting on $1000 it rallied back to my target of $1150within a very short space of time.
Now I wait for the global markets to settle at or near their support levels on the channel. Once this happens which should be by early next week I will be taking short term trades in the stock market again.
As the dollar weakens, commodities will rise. It is a patient game waiting for the dollar to turn, find resistance in its decline and then continue its downward movement. It is the opportunity to take longs on commodities again and stocks that mine those commodities.
It's fascinating but there's always something to learn.
Short term trading is't all its cracked up to be. People have a romantic disbelief about how exciting it is. The reality is that trading is mostly boring and repetitive.
It's a great hobby for retired persons and people who have wads of money. It is NOT for someone trying to replace their job.
Some people however, can find the happy medium of having a job and being patient while waiting for the trades to come. Building confidence in their trades but also mental discipline. Lastly growing their portfolio size over time like a professional golfer.
Support levels on the S&P 500 are 1093 in the short term. For the DOW it be 10100. The DAX is around 5400. KUMBA support is 24900 but could extend to 24400 odd intraday before closing on a hammer candle formation as example.
Watch the dollar. Keep an eye on the Baltic Dry Index. Copper is also a good early indicator as prices start to edge up.
Have a great trade,
Warrick
Financial & Investment Workshops, ebooks & financial freedom @ NEWSWEEK
Visit Aurora Global Markets for Global trading platform in equities, foreign exchange, commodities, precious metals and interest rates.
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