Trading Watchlist:
1. UAL – close active long UAL trade in favour of experimenting with submitting an early entry using the 2 hour timeframe:
Placed the stop-loss far away to give the price action enough room to avoid any possible stop-loss hunt.
2. BTC.D – analysed.
3. BTC – analysed.
4. MARA – analysed.
5. TIGR – analysed.
6. BIDU – analysed.
7. CMG – analysed.
8. UVXY – analysed.
9. USOIL – analysed.
10. JETS – analysed.
11. AXP – analysed.
12. SFM – analysed.
13. COST – analysed.
14. WMT – submit an early short entry based on the parallel channel:
15. DG – analysed.
16. PALL – still in no man’s land.
17. FDX – analysed: the price dropped today as expected. However, the price action was in no man’s land previously so it was a good decision to stay out of a possible trade. Continue to monitor its price action everyday to continue your learning experience.
18. SOXX – still ranging (“where SOXX goes, the rest of the market follows”).
19. INTC – still declining and not quite at a the major support area yet in order to consider placing a trade.
20. X – analysed.
21. XAUUSD – analysed.
22. US10Y – analysed.
23. TLT – analysed.
24. NATGAS – in no man’s land.
25. RUT – has naturally pulled back (ranging) on the daily timeframe as to be expected. I wonder if this is the reason why SFM, COST, AXP, and others are now showing signs of declining. Therefore, continue to monitor these assets everyday… let’s see how this all plays out.
26. QQQ – start scaling into a short position because the price action is near the upper area of the parallel channel, reducing the risk that the price action will see further upside before declining sufficiently:
Learning Points
- In comparison to using the Extended Fibonacci, the Elliot Wave Principle, and the weekly timeframe price action, the parallel channel is proving to be, potentially, the best strategy to short stock and markets that have rallied irrationally to the upside. Let us see where this takes us exactly!
Next Actions
- Scale into a WMT short as soon as possible.
- Scale into a QQQ short as soon as possible.
- Scale into a UAL short as soon as possible.
