Wednesday, December 28, 2016

2016 2nd trade on 7/8/16 (+1.1%) - Inverse Head and Shoulder liked pattern


  • After 2016 1st trade, noticed S&P500 formed a consolidation.  Initially this pattern resembled an inverse head and shoulder pattern.  (Pattern below blue line) When pricing spiked down suddenly then recovered quickly, I was impressed with this strength
  • On 7/8/16, I entered into S&P 500 funds when it broke above this consolidation (Blue callout).  Since this trading day ended near high of the day, it indicated strength




  • On 8/1/16 sold about 50% shares for profit when trend stop rising.  I decided selling 50% since trend was weak.  Looking back, it was the correct decision.
  • The rise was short




  • On 9/9/16, there was a massive drop, I sold another 25% shares with 25% reminder left
  • On 9/13/16, sold rest when the trend didn't recover or bounce up.  
  • The pricing recovered briefly then had a massive drop before the 2016 election that setup for my 3rd trade (see lower chart). 
Overall, I think the entry had promise after the consolidation.  Trade didn't work out.  Let me know what you by commenting below:

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