Trading Watchlist
1. US10Y:
As can be seen today, the US10Y has retraced, as anticipated, back to the top of the parallel channel.
As a result, use it as an opportunity to exit the initial (wrong) TLT entry as soon as possible, and consider taking half the profits out of the second profitable entry.
This is because I now expect the US10Y to rally to the upside before any possible further decline:
2. TLT
3. QQQ – analysed.
4. SPY – analysed.
5. RUTS – analysed.
6. HOOD – analysed.
7. BIDU – analysed.
8. SFM – analysed.
9. XAUUSD – analysed.
10. GDX – analysed.
11. GFI – analysed.
12. UVXY – analysed.
13. SAP – analysed.
14. CMG – analysed.
15. DG – analysed.
16. UAL – analysed:
Consider adding additional capital to UAL short in light of the current price action pattern.
17. JETS – analysed.
Learning Points
- The parallel channel are proving to be a very powerful predictor of the most likely price action movement.
The reason is that even if the price action breakouts of the channel unexpectedly, it typically results in the price action still, predictably, returning back to the breakout area (top of the parallel channel).
This makes it very easy for me to decide when best to go short or long, or see when the price action has completely broken it bullish or bearish price action structure.
Overall, this is not a small thing at all, because it means that I am now probably in a position to teach others how to become profitable traders (if I choose to).
The downside to using parallel channels on the daily timeframe, however, is that a person has to be very disciplined in order to patiently wait for the trades to play out.
Which is actually a trading advantage because most people lack a high level of emotional control, and it means that we can just ride the institutional traders computer programmes.
. - It seems that Gareth Soloway and the others at Verified Investing have fallen into the trap of taking the news to seriously, instead of primarily focusing on the technical at all costs.
This is why I have had to dramatically reduce the frequency at which I watch their videos.
Next Action
- Exit wrong TLT entry as soon as possible.
- Consider taking partial profits out of TLT trade as soon as possible.
- Watch today’s “Trading the Close”.
- Continue to regulate how often you watch Gareth Soloway’s trading videos.
- Consider adding additional capital to UAL short as soon as the markets re-open tomorrow.
