Good Afternoon,
I am not posting any charts on this blog as we went through a bunch last night in the webinar (thanks to all who stuck through the initial audio problems) where we had perfect markets to introduce moving averages. You were able to see how moving averages suffer in rangebound markets, but not in THESE markets - the trend is your friend and you can use moving averages in the following ways:
**support or resistance
**when the price crosses the moving average it gives you a buy, sell, entry or exit indicator
**crossover - using the faster MA to cross the slower MA and signal an entry or exit.
These markets are continuing to be a moving average traders dream, but yo must know how to apply them and how to use them. You also have to know which period is right for you as a trader depending on your style.
Talk about style - the markets got style, but the economic calendar doesn't. The markets look at it and say: you got nothing! Did you see the 427k print in initial claims? Doesn't matter, does it? The markets went up another 1/2 percent today - that is almost 750 points in 8 days - not bad, especially when we should see a lousy to below expectations jobs report in 6 trading days.
So, what does this all mean? It means that writing protection this month could hurt. It also means that I had to do it - I had to buy protection. Ask me if I have a trading plan? Yes, and here it is: because the markets went too far too fast. How long did I buy the protection for? Which strike? Most of you can figure that one out, but I feel like my wallet would hate me if I didn't buy some protection.
I will give the weekly closing commentary tomorrow afternoon with a look ahead at next week's "busy" economic calendar. As I said last night in the webinar, nothing matters except the Fed's rhetoric and they didn't dissapoint.
Happy Trading and Be Environmentally Cool
Coach Brian
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