But before you step up to the line to place your bet, you must have a plan – a set of rules rooted in risk management to guide you through your trade.
There’s no way to enter and manage a trade if you don’t know where you’re right, where you’re wrong, and where you’re taking profits. Without a plan, your strategy and philosophical approach to the markets don’t matter.
That brings us to the British pound.
Here’s a chart of the GBP/USD cross:
A few weeks ago, we outlined a short setup in the GBP/USD pair. The pound was breaking down to levels associated with the Brexit sell-off, and we wanted to ride that trend lower.
It’s been over a month since the S&P 500 made a new year-to-date low and market volatility has cooled somewhat. After averaging a 1% move (in either direction) every other day in the first half of the year, the S&P 500 has only had 5 such moves so far in July (16 trading days). The last one was over a week ago.
A couple 9-to-1 up volume days on the NYSE and an uptick in bulls on the sentiment surveys is providing some hope that the bear market environment may be fading. Our Risk Indicators (as well as the continued presence of more stocks making new lows than new highs) argue that it is premature to jump to that conclusion.
And, just like that, any residual strength in crypto has once again dwindled.
Guys, we like to keep it honest and real with you.
At a certain point, we feel obnoxious about being so repetitive. But we're not going to tell you anything other than what's happening -- it's just our job as technicians to follow the money flow.
In yesterday's note, we outlined how we were taking a small, low-conviction long if Bitcoin $BTC was above 22,000. Just one day after we put the position on, Bitcoin's fallen back into its range:
The largest insider transaction on today’s list is a Form 4 filing by Director Lorence H. Kim, who reported a purchase of roughly $1 million in Revolution Medicines $RVMD.
We have a new sector that's making a new all-time high! Nifty FMCG is successfully putting in higher highs and higher lows. And today we're here to discuss a long idea from FMCG.
We retired our "Five Bull Market Barometers" in 2020 to make room for a new weekly post that's focused on the three most important charts for the week ahead.
This is that post, so let's jump into this week's edition.
