Difficult times in the trading business for the longer-term investor.
Excellent opportunities for short-term swing traders, if we get it right.
I sat on the sidelines as the markets slipped recently. Unable to take advantage of shorts (trading the market to go down) as it all happened so suddenly. The large dips in FX (foreign exchange pairings) occurred, in those, I monitor, within a minute.
There are aftershocks, so timing any recovery is unusual. Those that I will consider are:
At some point soon Silver will rally. However, the recent bear trend means we wait for a clear signal.
NZDUSD is firmly down on the long trend. The COT is a buy, but we have to be careful with the COT signals when the COT is going against the longer trend; the COT, in this instance, still often works but can be short-lived. There is a possible buy opportunity here.
I’m looking for a buy in gold at about 1125 price with a good buy signal. Catching the signal with the correct buy: on-market, on-limit or on-stop is vital.
GBPUSD has been relatively stable over the last few days. A retrace to the 21-day moving average (MA) is worthy of consideration. It may happen quickly, if at all.
EUR might strengthen again soon against the USD. Unless I get daily, or, at a pinch, 4-hour price action at a support level, I will not take this until about the 1120 level.
Finally, the S&P 500. Difficult to judge. With the recent dip, the S&P could provide a useful gain on a bounce. A buy in the region of 1836, but could go down further to the 1770 area. Good price action, or whatever is your chosen price criteria, is essential here.
Lower trade values and full stop positions are considerations when volatility is high.