Gold & bonds?

Gold (GLD) and bonds (TLT) just keep hanging in while index continues to climb. I find that very interesting, if u don’t your missing the big picture. The spy now in 70+RSI zone…that’s overbought, means market going to pause to refresh or pull back here soon. Get shorting out your mind…if u even consider shorting this market u have screw loose or u just started trading. 

Don’t short bull markets!

TLT is your play of u want to protect yourself from a sell off. For a trade TMF 3x Bond ETN.

CEFL done nothing but slowly climb straight up since late November. 

Cha Ching!  

Been hell of a run since, collecting  3 dividends with full 2000 share position. Over $1000 in dividends that will be added to next buy signal to accumulate larger position. 

My goal here is larger and larger positions  until can reach the 5000 share level. 

Keep your eye on TLT and GLD

Picture Perfect Setup

The chart below is exactly the perfect set up for me.

GE first gave me himt it was turning down in late dec. TSI and MACD signaled sell. Both in overbought bullish territory and price is above 50 sma. This is not short signal…it is a sign the bull trend is slowing and you might want to take some off the table and look to imploy that money in better opportunities.

I got the offical call first week of January…5 ema crossed and closed below the 20 sma. Bullish trend turned bearish, but still trading above the 50 sma. Price fell 2 more $2.

The RSI on the sell side signaled oversold (-70). That is your first signal that the downside move is losing strength. Price moved sidways for couple weeks before breaking out to the upside and closing above the 20 sma. Even though the 5 ema hadn’t crossed the 20 sma we give the doubt to price.

Priced turned up closing above the 2o sma and it is confirmed by TSI and MACD that is a bullish trend reversal. 3 of the 5 checklist with price trump. 5 trading days later all 5 check list are signaling BUY.

Long GE a lot of shares…..bonus 3.15% dividend yield.

ge22017

The only hurdle left is to get price above the 50 sma.

GP

 

How do you know when to take profits?

One issue new traders will have is when do you take some profits? How do you know when to close a trade?

For me I put positions on in share blocks and I like to take them off in the same order. If you look at the chart below of #CSX you will see a perfect chart. Each buy signal moved into profit then price stalled. The indicators TSI, MACD, RSI and ADX all signaled together over bought…that was your clue to take some money off the table. Lock in that profit.

Then notice each time price moved sideways, worked off the overbought in the indicators then took off again, signaling new buy signals. You can easily put money back on. You don’t have to go all in or all out.

The moving averages and indicators work together to give you a clear picture of what is happening and what is the logical course of action. I am up over 100% in #CSX  since last September. On three different occasions I have sold shares than added shares back. This is why I call my trading system The Money Flow. Money flows in money flows out. You want to stay in the flow. I don’t try to guess or predict.

Why are train stocks moving up? I don’t care. The moving averages and indicators tell me exactly what to do each day. Today I will lock in some profits. Ordinarily because price is still above the 5 ema I would hold off, but notice today price went right to previous high…resistance…and turned around. That is your signal that right now the bulls are losing steam. You can read more about this in The Money Flow Trading System ebook.

21017csx

New Trade Turns Profitable

CEFL is starting to roll over. The TSI and MACD are rolling over and giving a sell signal. But price and the moving averages are still properly aligned. So this would be a could spot to lock in the $1,450 in price appreciation since November 2016 buy signal. More on this tomorrow.

Yesterday I posted a trade TMF 3x Long Treasury Bull long @ 18.74. Today we closed 19.48 4%  positive on the day.

2817tmf