It was a “day of demand” today in the markets even though we had a down day. This tells me that not much selling was happening.
SD20EMA is right on zero at 0.04…. I’m expecting to see the indicator continue to move above zero but have to see what happens Thursday.
Simplicity is the key to brilliance.
SD20EMA indicator is now at -20.49 and moving higher. Looking for indicator to move above zero for start of new demand cycle.
Demand Cycle = Higher Markets
$SPX now up 48 points from our 2nd buy signal.
Demand is increasing with SD20EMA indicator now at -105.80
On a daily basis demand dropped off very slightly and supply staying around the same for the last 3 trading days.
Looking for the SD20EMA to move above it’s zero line for start of a new demand cycle.
SELL signal will trigger when SD20EMA moves back below it’s own 5 DAY MA from above zero.
$SPX is up 41.28 points from our 2nd BUY signal and could easily go higher.
Ultimately…. our profit is determined by whatever the market is willing to give us. Our job is to stick to the plan and stay emotionally free.
I hope you all had a great Easter
SD20EMA has crossed above its own 5 DAY MA. That’s bullish and it’s exactly what we’ve been waiting for.
Now waiting to see if SD20EMA moves above zero because that will then be start of a NEW demand cycle.
Demand Cycles = Higher Markets
Have a look and see where SD20EMA was in Feb of this year and in late June last year and compare it to where the indicator is now.
History never repeats within the markets but there sure is a rhythm from within the SD20EMA
Holding our positions until SD20EMA moves back below it’s own 5DAY MA when above zero.
Have a great Easter Weekend.
It’s been fantastic sharing these methods with you all.
Major Bullish Percent have all ticked up.
Looking for moves back above 70%
Thanks so much for the updates.
Beautiful example of this method in action.
The media was all doom and gloom again when we were buying - as they always are.
This set of two signals and the last set of two in Jan/Feb are very similar - sell off to support, get some buyers on board with a small move up, smack back down through support so the weak longs sell and the shorts load up and then what do you know, the real move up begins and the shorts have to cover. They trapped both sides. Bastards are so cunning and smug. Didn’t trap us though!!!
Now looking for SD20EMA to move above it’s own 5 day MA and then above zero for bullish momentum to continue.
Look at the previous two SD20EMA bullish cross overs in Feb of this year and end of June last year and then look what happened to price. The same type of moves repeat themselves within the supply and demand numbers.
Holding position until SD20EMA moves back below it’s 5 Day MA after being above it and being above zero.
That was one big turn around within the markets.
Markets ended the day up but with SUPPLY at 1141 within that up-day there was also a lot of selling and fear.
If the markets had closed down for the day SUPPLY would of been way above 1300 again but for some reason the BIG boy / Manipulators didn’t want to see that much panic in the markets. That’s good for us.
With SD20EMA moving lower after the BUY signal on Monday we could see a 20 point move lower within the next 2 days before the markets take off again. Will have to see what happens.
I was biting a few nails on Tuesday because a lot of work has gone in to these trading methods and I didn’t want to see the signals start to break down. It looks like the signals are fine and I can start to relax a little again.
It’s fine to get emotional about things but don’t ever let emotions control your trades. When in a trade you have to always stick to the plan.
Lets see what Wednesday brings us
Looks like this could be a bit of a down day.
Buy signals usually come one day before the low, on day of low, or one day after a low.
If today is the low we should see markets rally from tomorrow but nothing is for sure in this game and that’s why we never trade more than 10% in any one signal.
We’ve had two signals within the last week so we are 20% invested.
This bull market at some point will turn into a bear market.
We will have a good idea if we are heading into a bear market within the next 5 trading days.
If we do enter a bear market we will trade using SPY PUTS from DEMAND spikes above 1300.
If SPY doesn’t show to be up within the next 5 trading days I believe that the markets are setting themselves up for a lot more downside. And by downside I mean “BEAR MARKET AHEAD”
So… if SPY is showing a profit between now and next Tuesday all will be well within the markets and you can expect to see new all time highs again.
Keep an eye on 5, 7 and 10 day tabs in this spreadsheet snapshot of my supply and demand numbers. Right now SPY is down -2.16 points from the BUY signal last Tuesday.
We have another BUY signal with SUPPLY moving back below 1300
We have another SUPPLY Spike above 1300 so “GET READY” because when SUPPLY moves back below 1300 we will BUY again.
Buying again at a lower price will bring our total average price down for the SPY Options which of course is brilliant.
SD20EMA is now at a good level to be buying… It’ll probably fall a little bit further on Monday which will of course be brilliant.
Everything is lining up for a good 2nd trade.
FEAR has entered the markets and we of course “BUY THAT FEAR”
Have a great Weekend