SOMEONE ISN'T GOING TO LIKE THIS CHART! SPY LONG.
Now don't be fooled we don't see true value in the stock market long term.
Long term = overvalued
Short term = undervalued
We see this a a classic bear trap. Here are a few reason we believe so.
Market has left a lot of gaps to the upside (Unlike 08')
Media are dramatising the situation (Like August 15')
Move was quick, blamed on China (August 15)
It's been the worst starting week in history. Retail Investors will short this news get trapped and get robbed just like in August.
Now we still believe the market has further to fall in the long term (1500) but we can't see that happening without the upper gaps being filled and PPT stepping in to consume short positions.
Shorts are so January 4th
We are also going to upload a comparison to the last rate hike cycle.
Remember to Follow and Comment
Markets
Best #SPY Trading Next WeekTime to trade SPY long into the short zones where we can go short the next week!
Hit the like button if you agree!
Have a great weekend,
Johan
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TOP OF THE MARKET; DOWNWARD TRENDThroughout the past year as the market swung up and down due to various news that supposedly influenced the decisions of traders, one thing that proved consistent was technical analysis. I use this method as my sole method of trading decisions because if you truly believe that machines and HFT is now prominent in the trading, then you have to believe that they operate with some sort of logic regardless of what is happening in the world.
Because of this, the market variations of the past year have actually been predictable as support and resistance lines are hit. As the year came to an end and the Fed's decision to raise rates became the forefront of discussion until it was actualized, a downward trend in the markets formed. Regardless of the reasons, this fact remains.
As a result, I am short the S&P 500 and any other benchmark going into the year 2016.
Ninja (USDJPY) struggles within the rangeAs you can see in the chart, there's little to no space in the range where USDJPY has been locked in for some time (since the recent lower point), so here's some things to think about:
The US Dollar Index ( USDOLLAR ) may breakout the resistance and go higher
Or it may get rejected at the resistance and come back all the way down
Considering both scenarios and the similar positioning I took on GBPUSD , I thought it would be reasonable to post my thoughts here about this pair.
EURUSD / 4HR / BAT PATTERN COMPLETEHello and good morning traders, I hope you all
had a great trading day yesterday.
Lot's of big moves, making way for great opportunities.
I'm looking at the EUR/USD today on the 4 hour time
frame and we've come into an 886% completion for
a bearish bat pattern.
Stops and Targets are in place, looking for a potential
move down into Target 1.
Star Prosper
Philip Stewart
Approaching Market Top - Technicals and Shiller's CAPE IndexThe SPY is overbought, and is about to decline. Seems like a longer term reversal will be in place. This is a natural adjustment to the interest rate environment. Following the link related to this idea, you'll see a further explanation using the Shiller CAPE Index Plot that is frequently updated on his Irrational Exuberance website. My target price is 180 over the next year, and potentially 160 in the next two. The market should then grind slightly lower and in a trading range around 160 for until 2018/19. After, the market should begin to improve as rates come back to normal.
One caveat. The market in the early 1930's may not have received the economic stimulus the federal reserve put forth in the 2009-2015 time frame. This may help support stock prices, and the market may not fall much at all over the next few years. However, money in the market does not equate to top and bottom line growth.
Last, these are my thoughts and they are not investment advice. Talk with your financial adviser before making any investment decisions.
AUDUSD / 1HR / GARTLEY + POTENTIAL BATHello and good morning traders, we're on the AUD/USD
1 hour chart and after seeing the news make a huge impact
to the market, we no doubt also see the market respecting
structure and fibonacci as usual.
I'm currently trading the bearish gartley, looking for TP1 and
maybe TP2, if we come up and test the 127% again and close
above that, we can wait for a bearish bat pattern. But of course,
it's only potential and we may never complete the D leg. But
having said that, here are the options we're presented with.
Star Prosper
Philip Stewart
EURJPY / 1HR / BEARISH BAT PATTERN (VIDEO)VIDEO: www.youtube.com
Hello and good morning traders, just got involved
with a bearish bat pattern on the EUR/JPY
Have identified confluence, sell zone, stops and targets.
Please trade at your own risk. Plan your trade and trade
your plan.
Star Prosper
Philip Stewart
AUDCAD / 1HR / ADVANCED STRATEGY? (VIDEO)VIDEO: www.youtube.com
With the AUD news just hitting the markets, we have a lot of
market hype with the good news coming out.
Still managed to bank pips by using the strategy in the photo
above.
New video released today going over previous patterns and
potentials, will keep you posted in a follow up tomorrow morning.
Star Prosper
Philip Stewart
WHY AUDUSD MIGHT BE A GOOD LONG-TERM SHORTALL CURRENCY PAIRS IN WHICH THE USD IS THE
DENOMINATOR HAVE BEEN FOLLOWING A SIMILAR
ARC SHAPE SINCE THE 2009 RECESSION.
AS WE CAN SEE HERE, JPYUSD, CADUSD HAVE REACHED
THEIR PREVIOUS SUPPORT AREAS. ONE CURRENCY
PAIR THAT HASNT REACHED ITS PREVIOUS LOW
IS THE AUDUSD. ALL MARKETS WORK TOGETHER,
THEREFORE I BELIEVE THIS PAIR IS LAGGING
COMPARED TO IS RELATIVES. AUDUSD COULD BE
A GOOD POTENTIAL SHORT IN THE LONG RUN
AFTER ITS CURRENT CONSOLIDATION.