Not finding anything particularly easy to read at the moment, so treat the following post as me thinking aloud!
The 2 Indices I trade most are DOW and FTSE, so I'll start with my thoughts on those.
First of all to make clear, I have no idea where they are going, struggling a bit to be honest, so the following is based on my system.
I have a bit of a Dilemma. Entered a DOW long today at 12,870 which is currently showing +105 pts.
Based on today's price action and the fact we are entering December you have to consider that the base is now in for the Santa rally. At the same time however, we have this stat I posted on the ADVFNforum last night which suggests switching short tonight:
I drew this channel a couple of years ago, the upper line simply being a mirror of the lower line.
It's quite interesting that there appears to be a level of resistance here. Certainly not a solid reason to justify a short position, but an observation...
As we are still in a situation where there remains a lack of very high probability trades that are both ripe and imminent, I'm going to run through the main part of my watchlist showing what I'm looking at right now, why I'm looking at it, and detailing in pictures the simplicity of the type of trading set-ups I trade.
Since the SNB Euro Peg we've seen both EUR:CHF and GBP:CHF rally exceptionally hard to overbought levels. As I was fortunate enough to have participated in the long side of the GBP:CHF move, I'm now looking for signs to enter short ahead of a pull back.