Finally, even this level would only be about a 10% correction. I don't have the stats to back this up, but between now and October the market can do some pretty crazy things. If it does, buy calls! A large dip within an overall bull market is nothing but opportunity.(Remember, this is a journal, so these are not predictions, per se, they are just my thoughts for future reference.
My gift to you: This is an overnight futures strategy that I will put to use (paper trading) as funds permit. Currently I would only be able to do this, realistically, on the QM and MGC contracts. But most of you are not broke. Feel free to use this strategy. It works in both bull and bear markets, as long as the trend is stable. Criteria: 50 SMA slopes upward/downward Price makes a relative new high/low 10 SMA > 20 SMA - reverse for shorts Exit: when the SMA crosses in the opposite direction. What do you do if everything lines up AND you get a market that gaps from the congested zone? Put your kids college fund, or your bar tab, on the table. Re-entries can be placed at new relative highs/lows as long as the 50 SMA is not flat lining. Exits remain the same. Your welcome.
https://qz.com/157404/how-you-could...rs-by-perfectly-trading-the-sp-500-this-year/ Turn $1,000 into billions! The only flaw in this strategy is perfection. That problem can easily be solved with a time machine. If you don't like hipsters wearing skinny jeans, trade futures in the 70s, or dot coms in the 90s. Your welcome.
The 50 SMA is turning up on wheat, so I will be watching for HHs and HLs. Once a new trend takes hold I will employ the momentum, MA crossover strategy. The 50 on corn and gold is flat.The 50 on oil may be flattening out as well.
Lol. I guess it is flatlining too. However, it recently had a positive slope. So I guess I was seeing what I wanted to see.
Break out traders could possibly score big, but look how wheat traders got crushed. Break outs have broken my heart far more than any female! No doubt I am missing the nuance of trading momentum. However, gold is a liquid contract, so it is definitely on the day trade list. Micro gold can have 30 cent spreads and maybe even more in a fast market. Not good! So if I see opportunity it will be in the big contract.