Shinken Trader

In the newspapers, there are many advertisements that make trading apear to be simple. These advertisements unfortunately promote unrealistic expectations in the minds of new traders.

Everyone should have realistic expectations when they start out in any endeavour. Continue Reading »

Based on the 12M chart of the Dow Jones Index, the market flirted with the Maximun Extension but has failed to close above it. The 416 point drop seen on 27 Feb is in line with the view that the market is at Range top. 

The market has closed above the maximum extension with a bullish directional candle. This event is now hinting that the bullish trend can possibly sustain. If market can close with bull bars above the maximum extension for 2 consecutive days, I will change my stance from range top to acknowledging bullish trend continuation instead.

12M is in bullish upswing; 13W is in bullish upswing;18D is also in bullish upswing, but has reached Demark exhaustion. In addition, the 18D swing is highly overbought statistically, in both price and time.

12M is in upswing, but is now in the 12M primary sell zone; 13W is in bullish trend; 18D is also in bullish trend with new Demark exhaustion.

Like the S&P500, the ND100 has a very similar Demark exhaustion signal so I have initiated a short trade on ND100

12M is at its Primary Sell zone; 13W is in bulish trend; 18D is also in bullish trend , but is at Demark exhaustion. Coincidentally, market is also trading in Ray’s time window where he expects market to peak.

I re-entered short position on KLCI, as the original analysis stands. 12M at top of its max extention; 13W at Demark exhaustion, 18D breakout volume was poor, suggesting high probablility that market will at least correct. 

I have initiated a short position on USD/CAD. This is based on the view that the market is at the top of the corrective rally, with Midas and Demark exhaustion supporting the sell trade. The Stop loss order has also been placed. 

I rarely trade stocks, but this trade setup is too attractive to miss. 12M is in corrective upswing, and is at Demark exhaustion; 13W is in bullish trend, but Demark exhaustion is suggesting a trend change; 18D is in uptrend, but also has Demark exhaustion signal, plus Barrometrics Change in trend