Long
Another long till the Fed induced bubble pops or continues up
Market appears to have settled from lows and is showing strength in the pre market. Exxagerated Bullish divergence from the 4hr RSI appears to have bounced off in the Pre market hours. Pre market moves in some cases can dictate how the rest of the trading day goes, and if the bullish candle holds, we can see a potential retest of previous structure highs to form a double top. Very few markets tend to have a dramatic crash without retesting or close to the highs. The target areas would be a good area to buy put options. While the Feds can continue to keep pumping the markets, its not likely that the markets can keep rallying higher without a significant correction of 20-30%. But then again, bubbles can last longer and go higher then one can think, so its best to play puts if targets reach modestly.
Trading Plan
Low leverage/no leverage Trade. For the percentages, targets, and R:R the mid point is used.One can adjust it based on risk tolerance
Long entry: 3300-3372
Stop loss :3276 (-2.58%)
Target: 3500-3550 (+5.53%)
R:R (2.3-2.5)
The 3500-3550 area would be likely take profits. Stop would be at 3275.
High leverage trade plan (x3-5)
Long entry 3340-3375
Target: 3500-3550(+5.53%)
Stop loss: 3302 (-1.5%), for even more lev 3320( -0.9%)
R:R 4.24, more tight stop 6.0
Trading Plan
Low leverage/no leverage Trade. For the percentages, targets, and R:R the mid point is used.One can adjust it based on risk tolerance
Long entry: 3300-3372
Stop loss :3276 (-2.58%)
Target: 3500-3550 (+5.53%)
R:R (2.3-2.5)
The 3500-3550 area would be likely take profits. Stop would be at 3275.
High leverage trade plan (x3-5)
Long entry 3340-3375
Target: 3500-3550(+5.53%)
Stop loss: 3302 (-1.5%), for even more lev 3320( -0.9%)
R:R 4.24, more tight stop 6.0
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