S&P500: how it repeats it self

The S&P500 Index saw a higher volatility in the last days, something that is scaring the Bulls. Is the uptrend pattern still alive?

The parabolic pattern of the S&P500 is in front of everyone, and usually, once the uptrend is over, we see a break of this pattern, with higher volatility. To prove what I am saying, we can look at the past, because a guy said: "the Market repeats itself". The problem is to understand how this sentence is correct.

CLICK HERE FOR THE FULL STUDY

See you, US Dollar

The US Dollar is very weak, here we have a few important levels we should monitor with attention, because things are not getting well for the US currency

https://www.iaminwallstreet.com/Articles/2018-01-26-See-you-US-Dollar.html

Something important happened to EUR/USD

Something very important happened to the EUR/USD exchange, something we cannot avoid looking at, something we should all know (if you missed it)...
https://www.iaminwallstreet.com/Articles/2018-01-17-something-important-happened-to-eurusd.html

Not that hard to make profits in this period

Do not tell me it is hard

to make profits in this period

I am talking about financial trading, of course. We are going to see the pattern that helps us to follow the uptrend with intelligent stops

THIS IS AN UPTREND

It is so evident, the Market is going up, and not just the S&P500, but also Crude Oil. They have a clear pattern that is easy to see, and this is the reason you must be mad opening SHORT positions right now! I am not telling you that this Market will not go down anymore, I am just saying that the chances to make profits following the uptrend are much higher than betting on a downtrend; but the time is running out to get advantage of this bargain. Let's see a few charts:

As long as this pattern does not change, there is nothing else to do but following the uptrend. Obviously, always with precise strategies.

OUR OLD FRIEND "TRAILING STOP"

In my opinion, with this pattern, we can use a very simple tool: the Trailing Stop. This is what I am doing with my customers. I use precise levels calculated with my studies, then I open LONG positions above them, and I use a stop under them; when the Market goes higher, I move my Key Level to a higher price.

We trade the S&P500, and in October 2017 I simply said to follow the uptrend above 2547 points, with a stop under it. In December I said to follow the uptrend above 2658 points with stop under it. In the last week, I moved my Key Level to 2735 Futures Points, and we are following the uptrend, again, with a stop under it (and yesterday we increased the LONG position at the support, because the S&P500 went close to 2735 points, where we knew we could trade with a very little risk...). This is a Trailing Stop! Let's all be grateful to it during these times! We are doing the same with Crude Oil.

Do I usually trade with Trailing Stops?

Honestly, I do not use Trailing Stops with my original approach; but this is the strength of being a semi-automated system trader, and not just an robot or machine! Conditions change, and we have to be wise and humble to change with the Market. I do not use Trailing Stops, usually, but this is the time to use this technique.

Now, you are wondering how do we calculate the Key Levels... well, that's our job :)

OTHER OPPORTUNITIES?

Guys, Stocks are flying! I am trading them, and I feel so safe with my system, because with single Stocks I can diversificate easily! I trade 22 Stocks, I follow the uptrend with most of them right now, and I just take some profits and let the remaining to run, using a stop-loss just below the entry point (the entry point was planned to a precise level due to our studies, of course).

We went public with our strategy, in April 20, with our free Stock Strategy Daily Report, you can see all the results, so far, on the website (updated every week):

https://wallstreetstockstrategy.com/service/#strategy-performance(***)

At the moment we have a profit of +9.96% without leverage on the entire capital (this is important, on the entire capital!), always taking a very low risk. The drawdown has never been higher than 1.45%. It means we can use a 4:1 leverage with a low risk and get a perfomrance of +39.86%). How? Just following the uptrend with tight stops!

(***) - we are still working on this website, but you can sign up for free to get the Daily Report.

SUMMING UP...

If you believe in Crystal Balls, you probably think to know when the right time to SHORT is coming... but I consider myself a wise trader, and I follow the uptrend as long as it is not the Market to tell me that something has changed. I would suggest you to do the same :)

Best Regards,

Daniele Prandelli

I Am in Wall Street Ltd

e-mail: info@iaminwallstreet.com
https://www.iaminwallstreet.com

High Probaility Trading Techniques - S&P500, 30 Year Treasury Futures Bonds, Crude Oil, Gold, Corn, Soybeans, Wheat, Forex, Stocks, Silver, Live Cattle and S&P/ASX200.

https://www.wallstreetstockstrategy.com

Trading Stocks with low risk and high return - Yes, we know how to do it.

New 2018 Forecast, Analysis and Strategy Bulletins

The new 2018 Bulletins are now available, here the links:

• 2018 S&P500 Analysis and Strategy Bulletin
• 2018 Corn & Soybeans Analysis and Strategy Bulletin
• 2018 Cotton Analysis and Strategy Bulletin
• 2018 Live Cattle Analysis and Strategy

We provide also a Forecast for the 2018 about the Markets here above. I know many no-expert traders rely totally on the forecast to place their trades. This is a huge mistake!  For this reason, I have decided to provide a letter where I explain What is the Bulletin and How to Use It... Tough but honest!

I hope you enjoy it!

Adapting our Trading to the -S&P500- Market

The S&P500, shameless, continues its slow march to new Highs 

Did you know that every month, in the last year, the S&P500 hit a new all the time High? This is a constant uptrend, with no significant pullbacks. SInce November 2016, the highest drawdown of the S&P500 was 77 points in March 2017, but in the mean time, the Index moved from 2084 to 2597 points!

Isn't it enough to realize that the S&P500 is in uptrend? What do we need more? Some people contact me with always the same wrong questions: where do you think the uptrend will stop? Where we can open SHORT positions? Few people tell me: as long as the Market remains in uptrend, let's follow it! The trend is my friend.

When the Next Crash?

Every week I hear someone forecasting the imminent crash, but the US Stock Market keeps moving higher and higher. I did expect a drop from August, which started well, but the Market shut me up one month later. But I never said the uptrend was about to finish! Actually, I believe it is about to continue! Focus to the actual situation, the uptrend, not to something that is not real until it does not happen. Your opportunity is now!

How did we trade the S&P500 with our Subscribers?

With a very clear strategy, not even very hard to understand: the S&P500 is in uptrend, and we open LONG positions to follow it; one part of the investment remains always LONG, we do not touch it! There is no reason to touch it if the main structure of the uptrend does not change; we use the level at 2547 points to monitor any change of the structure. But the uptrend of the S&P500 is also very slow, and for this reason we are using another part of our investment to play with the Market, which means we buy in area 2570 Futures Points (December Contract), and we close it in area 2580 points (in the last three weeks we did it four times, and today we have bought again at 2470.25 Futures Points).

Summing up...

This is definitely NOT my favorite trading approach, because I like to follow swings in an active Market. But the Market has changed conditions, and I have to be wise enough to understand it. I had to adapt my trading to the Market, and it is going well now. I had some troubles to fit my trading to the actual Market, I have to be honest and say that. You know, we have a Trades Record, we do not hide ourselves when we have some troubles, because trading is also about dealing with unfavorable periods. If you are wise enough to suvive to them, I guess you are a good trader.

Allergan PLC stocks breakdown how we trade it

Allergan PLC was a good Stock to open SHORT positions in mid-October, but we were already SHORT from September.

It is easy for everyone to understand why, in October, Allergan is losing so many points. In fact, on Monday... READ MORE