One way to prevent losses in a deteriorating position is the use of stop-loss orders. A stop-loss order is activated when a stock, ETF or futures contract reaches a certain price point. Let’s use the example of Facebook. On the afternoon of Jan. 4, 2018, a purchase of FB is made at $185. After rising above $188 a stop is placed to sell FB at $184 (just below the previous high close) on Jan. 11. This means that at $184 the stop becomes a market sell order and the long position is liquidated.
Some trending markets, such as gold, the euro and bitcoin may continue their behavior into next week. I’m bullish-sideways for next week on all symbols I track, except the yen, soybeans and bitcoin, due to understudies. The Yen, Beans, and Bitcoin chart bearish to me. The breakout candidates for this coming week are the Euro (monthly pivots are equal to last month, plus trending weekly pivots), gold (bullish), soybeans (bearish hammer) and bitcoin (bearish).
It looks like the S&P 500 Index may be on or near its weekly lows, although above my projected range. I want to explore the trade idea of going long the S&P 500 here at 10:45 a.m. Central on Thursday. Reasons I contend this is on the price lows, including that price being supported at the daily 20-period simple moving average (SMA) and weekly camarilla pivots, as well as transient intraday signals.
The Cycle Projection Oscillator (CPO) is a technical tool that employs proprietary statistical techniques and complex algorithms to filter multiple cycles from historical data, combines them to obtain cyclical information from price data and then gives a graphical representation of their productive behavior. Other proprietary frequency domain techniques then are employed to obtain the cycles embedded in the price.
It is new Federal Reserve Chair Jerome Powell’s first real opportunity to steer the ship in the semi-annual congressional testimony. He first addresses the Senate Banking Committee on Tuesday at 9:00 am Central and then the House Financial Services Committee on Thursday at the same time. Speculation on the path of interest rates hikes have led to fickle market conditions.