I received a ton of great responses via Twitter and email for this week's Mystery Chart, so thank you for that.
Most said you'd be buying the breakout at current levels or on a successful retest, but a few skeptics were staying away. Let's get into the actual chart.
Last week I had the pleasure of being on Real Vision TV where I recorded two segments, one on Bonds and Equities pairs trade (short EWJ/SPY).
The video to the Equities trade is here, but since I'm not sure if/when the free video about Bonds will be out I wanted to go through that trade for you all on the blog. And if the video does come out, I'll be sure to share it.
On this podcast episode, we're flipping the script a bit. I was invited to come on the DailyFX Podcast hosted by Tyler Yell last week, and I wanted to share that audio with you here today. In this conversation, we discuss the recent Chart Summit in Breckenridge, CO, how and why I started Allstarcharts.com and what trends I'm currently seeing in the market. One thing we also talked about was the benefits of journaling and writing ideas down on paper. I really enjoyed this conversation so thank you Tyler Yell and DailyFX for inviting me on.
Chart Summit was a "Ski during the day and Chart at night" event held on February 22-23, 2019 in Breckenridge, CO. I co-hosted it with Brian Shannon and this is the video of my presentation:
The Top/Down Approach to Financial Markets using Technical Analysis
As we wrap up 2018, it's time to forget everything that happened this quarter and this year and start from scratch. It’s irrelevant. We’re moving forward with fresh eyes. This is our Q1 2019 Playbook.
Whenever in doubt, zoom out. Monthly charts are a great way to do that. On November 30th we got new daily, weekly and monthly candles. This is a lot of new data that we have to work with.
During our members-only conference call and our trade management post we discussed why a more neutral approach is best as we identify whether equities are going to consolidate at higher levels or begin to roll over again. We also discussed the importance of taking some profits quickly in an environment that produces whipsaws in both directions.
Over the last two weeks we've seen a number of our long ideas failing and more of our short ideas working, suggesting that lower prices are likely ahead in the short-term and that we should continue to err on the short side of stocks. This post will outline some of the evidence we're seeing supporting this thesis, as well as adding a number of short ideas to our trade list from October and November.
