LunaticTrader

Investing with the Moon

Stops were taken out

Posted by Danny on July 24, 2013

A brief follow up on yesterday’s post.
The trailing stops for Nasdaq and crude oil were both taken out yesterday, and their daily momentum continues to be down.

The daily momentum for S&P 500 index also turned down yesterday, so that means we can now use a trailing stop just below yesterday’s low for that index. The low was 1691.13.

What next for Nasdaq and oil?
Now one waits until there is an attractive setup again. The markets can fall or go sideways until they get close to their daily key reversal levels. Or they can turn back up after a few days and then we may see the daily momentum turn up again. Both can happen.

Stay tuned,
Danny

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3 Responses to “Stops were taken out”

  1. Alex said

    Hi Danny, what happen to Gold now ?

    Alex

    • Danny said

      Hi Alex,
      Gold is now in rally mode as it has closed above its daily key. The daily momentum remains up, so too early to take profits on it.
      Gold is good example of how these key reversals are supposed to work.
      A few weeks ago the daily momentum turned up (https://lunatictrader.wordpress.com/2013/07/08/key-reversal-levels-for-week-of-july-8-2013/), which was the first positive sign. Gold was then still in low 1200s. Then it climbed towards its daily key. And last week also the weekly momentum turned up. Now it has entered rally mode by closing above daily key level. Chances are that it will now go on to test its weekly key resistance. The weekly key is currently at $1448, but may of course come down a bit more before gold reaches there.

      The daily key reversal level for gold is now support at $1281. So, if we see a daily close below that, then gold would be back in decline mode.

      Danny

  2. Alex said

    Noted tqvm

    Ae
    Lex

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