Quiz for traders

The Art of War, written by Sun Tzu, states that victory in war (as in trading) requires knowledge of the enemy (the market) and also knowledge of oneself. 

Today, I came across this quiz for traders. It requires a TRUE or FALSE answer. Score one point for every answer that is TRUE for you.

GBP

The 12M is at possible resistance; a sustained break above the current resistance will suggest an attempt to retest the Sept 1992 high of 2.0100. However, there is also the alternative view that the curent resistance zone can hold. Demark sequential exhaustion on the daily chart now supports the view that the resistance should hold. I am now waiting for trade setup and trigger for a sell trade entry 

Tocom Rubber

12M is still in uptrend, 13w is in downswing correction and has reached 13W LRB support, as well as Midas support. 18D has Demark signal for high probability trend change. This buy signal was triggered at yesterday’s close. I bought at market, with stop loss at 183.00

Corn

The 12M is in upswing, the 13W is also in bullish trend, and so is the 18D. However, there is a Demark signal that suggests the trend on the 18D may change. Will watch for reversal clues.

Palm Oil

The 12M has alternative scenarios. The most immediate scenario suggests that market is at a resistance top. This is reinforced by Demark at 12+, and a close above 1942 basis perpetual chart will give me the Sequential 13. On the daily, I also see the Demark sequential 13. I will be keeping a close eye on this for possible trade trigger

Russell 2000

If the Russell 2000 closes below 784 for trade date 27 Nov, it will trigger my sell trade with stop loss at 810. Meanwhile as I write, the hourly chart is suggesting that the trigger willbe activated. 

16 Good Trading Rules

I came across the following excerpt in John Mauldin’s newsletter.

Dennis Gartman’s Rules of TradingEvery year at this time, Dennis Gartman publishes his “Rules of Trading.” This year they are more succinct than ever, and I am taking the liberty of reprinting them here because, simple though they may be, they are also profound. Dennis has come by some of the rules the hard way, and it pays us to learn from his long and successful trading career.

EUR

On and before Thursday 23 Nov, I maintained the belief that the market was trading at a strong resistance zone. However, in order to initiate a sell trade, I needed a setup and trigger. The market then proceeded to break the resistance high on Friday 24 Nov with a very strong bullish bar. This bar had a range of greater than 1.5 times the average daily range. If market closes above 1.3082 on Monday 27 Nov, I will expect an eventual retest of the Dec 04 high of 1.3667, so I will change my stance from Range Trader to Trend Trader. Monday will be very interesting.

CAD updated

The CAD has moved down by 0.0119 today (24 Nov) and this is in line with my bearish view , expressed in the post dated 23 Nov

MSCI Taiwan

12M is in upswing, but there are alternatives to the wave count. the 13W is in range, within an uptrend. This can potentially lead to a Barrometrics Change in Trend signal, which can also be supported by Demark Sequential, currently at 12+, and is awaiting the final 13. However, 18D is in uptrend without any CIT signal. I will prefer caution on this instrument. Caveat Emptor!