I hope you’ve had a good week and lived to trade another day following the equity market “rollercoaster” yesterday. Those of you who saw the Trading Club video earlier in the week will know that our Equity Checklist is currently neutral, and would have known to avoid directional trades during the increased noise and volatility.
In that very video, I commented on how the S&P 500 was oversold on an hourly basis, but could be poised to run stops at 2625 on the current futures contact. Here’s the chart we published shortly before the “rollercoaster” on Thursday.
By now I probably don’t need to tell you why we follow our Checklist trading process and just how important it is during times of heightened volatility. We cover a range of markets including major currencies and commodities as well as equities, as I demonstrated above. There are a couple of particularly interesting developments taking place this month, as captured by our Checklists, which I shared in this weeks video for the Trading Club members. Whilst I can’t give too much away out of respect for our paying members, the Australian Dollar is one of the setups that we are looking at more closely given the positive Checklist score and opposing oversold technical extreme.
The other point of interest is the negative score we have for the Yen this month. Whilst it doesn’t feel quite right against the backdrop of current sentiment (the Yen tends to appreciate as a safe haven during periods of fear) it is certainly one to watch along with the Ozzie if global growth anxieties abate and risk appetite returns.
Have a great weekend!
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