One of the best trading weeks of 2014.
The forum is a great help.
Which you all a nice weekend.
U.S. Stocks plunged today, led by a sell off among small companies, as investors weighed valuations and speculated the FED may raise interest rates sooner than expected.
The decline may continue tomorrow.
Today, 8th of July, DAX presented a good trading opportunity and I’ve made my Short entry:
Financial Instrument: Ger30 -> Entry rule: Break Out.
STOP 9934.0 Stop/Entry distance 22.0
TP1 9873.0 TP1/Entry distance 39.0 TP1 RR 1.8
TP2 9800.0 TP2/Entry distance 112.0 TP2 RR 5.1
RR -> Reward / Risk
Both Targets were reached. :-)
Stocks rebounded from a two-day decline with the idea that the awareness of complacency in the market was offset by good news on employment and the prospect of good news about the corporate profits.
Although preferring a bearish Scenario, we have always to consider the possibility of the continuation of the rebound.
Happy trading. :-)
The DAX has been falling since Monday after failing to remain above 10000 for the third time. The decline was interrupted yesterday by the 9755 barrier support (S1), marked the low of June 26, and after a jump to the area of 9800 (R1), the index returned today to challenge the barrier mentioned again. The short-term prospect remains negative and below a critical drop bracket 9755 (S1) can extend towards the decline of the area 9700 (S2).
My preference for the Scenario of a decline in the Markets, mentioned in the previous post, was confirmed today, with the Standard & Poor’s 500 Index resuming a selloff started earlier this week, as signs of financial stress in Portugal fueled demand for haven assets.
I maintain my preference for the continuation of this decline.
The latest measures taken by the Administration of Banco Espirito Santo and the potential measures to stimulate the Euro economy, led the major stock indexes to rise while gold falls today with one of the largest declines in 2014.
Janet Yellen told today the easing shall continue as problems remain in labor markets and inflation is still below the Fed’s goal.
Can we conclude the markets will continue to climb?
Light Crude rose after the announcement of the reduction in U.S. stocks, following the increase of the processing rates in refineries.
The recent positive data from China and the great reduction of stocks, should lead to an increase of the price of this asset.