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Australian Banks are at very interesting positions. Some are poised for action from known resistance levels while others have halted their steady climb in price. Meanwhile, I have been happy to take advantage of any decent setups that present. A recent case-in-point was the triple top on Gold: Chart 1: Gold Daily Bar Chart with Triple Tops
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After Silver and Gold both broke out of their sideways moves in late August, I was interested see if Gold would break through the 1800 level or drop below it. So far it is the latter. (Safety in the Market Platinum students will have read Noel Campbell’s excellent article highlighting the very big picture resistance at this point.)
What ensued was a nice one-day ABC short, which hit 100% on Wednesday night. Too easy! Chart 2: Gold Daily Bar Chart with ABC Short Trade
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My daily routine of checking a small quote list of stocks and commodities meant I was able to capture this trading opportunity, even though I don’t specialise in this market. The key here was to look for a big picture setup – on, say, the weekly or monthly chart - and once this was recognised, to stalk the market for a trade entry, such as a one-day ABC. The more analysis you do on the big picture setup, the more confident you can be in the trades that present. Of course, knowing a market well gives the added advantage of knowing the best way to trade it - in both entry and trade management - but this is not essential to take a profitable trade.
US Equities
The US equities space is also showing some interesting positions. Of those stocks that follow the same trend as the index, some are at All-Time-Highs while others have been selling off over the past few months. A Presidential election will be held on 6 November (an interesting date for those who have completed the Ultimate Gann Course) and we might look for a change of trend around this time. Perhaps some stocks are showing a lead by falling already.
The Dow Jones has fallen sharply in recent sessions but this doesn’t mean we won’t see a rally into early-November. The Dow is at an interesting resistance level at present and so we should keep a close eye on the action over the next couple of weeks. Chart 3: DJ-SpotV Monthly Bar Chart with Resistance at 100%
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Trading opportunities are constantly presenting across the equity and the commodities markets. To find a setup worthy of your attention, follow a daily routine and look at the big picture first. Once you have found one, look more closely to decide the best way to trade it.
It’s the Journey
Lauren Jones
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