Well what a week it has been. I haven’t been able to blog much compared to last week but I sort of find that using a weekly moving average is bad for trading but great for positioning for the long term.
S&P500
We mentioned at Investment Moats last month that we should see a consolidation here or a break down.
This week we saw how important that 43 week EMA was and a huge bounce off it for a 5.6% gain.
Were any of you traders able to profit from it?
While such a bounce seem to herald a continuation of this bull market, we might still see my original scenario panning out, where the next week go lower, lower, higher. This would bring the 17 EMA and 43 EMA closer.
A sharp move next month my see another head and shoulders forming which would be bearish.
STI
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