Update: Didn't take this trade, But anyway it wasn't a successful forecast.
In my earlier posts, I presented my rational behind being inclined to the bearish side on U.S. equities. Now, I am presenting the mechanics of my first shorting attempt.
There has always been a good positive correlation between short term WTI Crude Oil and the S&P500 OVER THE SHORT TERM. Having that said, the recent downside break in oil prices warns the it is probably the time for a correction.
The strong bearish divergence on the 14-week RSI also warns of extreme exhaustion, meanwhile, the index is hanging at the ceiling of this multi-year ascending channel.
I am risking around 2.5 percent, and targeting around 7 percent pullback for now.
twitter.com/thefxchannel
thefxchannel.com
In my earlier posts, I presented my rational behind being inclined to the bearish side on U.S. equities. Now, I am presenting the mechanics of my first shorting attempt.
There has always been a good positive correlation between short term WTI Crude Oil and the S&P500 OVER THE SHORT TERM. Having that said, the recent downside break in oil prices warns the it is probably the time for a correction.
The strong bearish divergence on the 14-week RSI also warns of extreme exhaustion, meanwhile, the index is hanging at the ceiling of this multi-year ascending channel.
I am risking around 2.5 percent, and targeting around 7 percent pullback for now.
twitter.com/thefxchannel
thefxchannel.com