Trading Watchlist:
1. QQQ
As can be seen above within the QQQ chart, it made perfect sense to exit all of my long positions concerning the broader markets (QQQ, SPY, RUTS, BTC) on the basis that there is a strong likelihood that the price action will decline in due course.
This is because the price action of all the major markets had, first, surprisingly rallied out of nowhere, and are now all approaching key resistance levels.
If I was to start scaling into a short position at this point, I do not think it would be worth the risk, as I expect the markets to drop about 3% (to the next major support level or diagonal trend line) only before we will be able to determine whether it is most likely to continue its decline, or move or continue its bullish move to the upside.
2. BTC – analysed:
3. SPY – analysed:
4. RUTS – analysed:
5. US10Y – analysed.
6. UVXY
I decided to exit my long UVXY trade with a small loss for the following reasons:
(1) UVXY looks set to continue its decline to a major support level on its 1 hour timeframe, and
(2) the possibility that broader markets would suddenly decline at the current price action level, causing UVXY to spike upwards, did not occur.
Next Action
- Wait patiently for the broader markets to decline, then decide what direction they want to move before, generally, submitting any further trading positions.
- Exit UVXY long trade, with a small loss, immediately.
- Watch today’s “Trading the Close”.
