Opportunity to short S&P 500
Every one on the Street talks about incoming crisis and 5%+ downtrend for main US indexes. I suppose every trader should use such opportunities and open corresponding short positions.
What we have for S&P today? 2017 and January 2018 made it extremely overbought - RSI was on 86, the last time we saw these levels during 1980 rise, and it was followed by 21% correction. Bad news from Apple (3.5% of the whole S&P) and unjustified tax expectations made the trend line breakout, with a wide gap. RSI has approved the signal by breaking through 70 (the most reliable RSI signal). Combing these factors all together I see a safe trade opportunity and open a short position.
The best tactic for TPs is to close step by step. I am going to do it in three steps, as I show on the graph. I also put my SL very closely, because we still have a bull market, and I don't want to take additional, very possible risks.
What we have for S&P today? 2017 and January 2018 made it extremely overbought - RSI was on 86, the last time we saw these levels during 1980 rise, and it was followed by 21% correction. Bad news from Apple (3.5% of the whole S&P) and unjustified tax expectations made the trend line breakout, with a wide gap. RSI has approved the signal by breaking through 70 (the most reliable RSI signal). Combing these factors all together I see a safe trade opportunity and open a short position.
The best tactic for TPs is to close step by step. I am going to do it in three steps, as I show on the graph. I also put my SL very closely, because we still have a bull market, and I don't want to take additional, very possible risks.
Pernyataan Penyangkalan
Informasi dan publikasi tidak dimaksudkan untuk menjadi, dan bukan merupakan saran keuangan, investasi, perdagangan, atau rekomendasi lainnya yang diberikan atau didukung oleh TradingView. Baca selengkapnya di Persyaratan Penggunaan.