What Is Fueling This Rally

What Is Fueling This Rally

No matter where you stand politically and what you may think of President Donald Trump, you’ve got to admit that he’s a pure breed optimist. And just maybe, despite all the media poison and the political infighting, it is that very sense of good old fashioned American can-do optimism that continues to fuel the flames of the Saturn V mega rocket that has propelled equity markets to all time highs with apparently no end in sight.

2017-03-01_spoos_update

I wonder how many participants had a chance to enter before the rocket launch. Perhaps 2 or 3 percent tops? Now ask yourself this: How many are now still riding this campaign? A fraction of a percent maybe? So if you’re a loyal reader here and traded along your humble host then consider yourself part of a very small and exclusive group of traders.

I’m not saying that to pad our own backs or reel in momentary glory. First of all this is not the first time we’ve caught a trend (although this one thwarts almost everything I have witnessed) and secondly you’re only as good as your last trade. But the take away message for all of us once again is that you do not need to be a genius, that you don’t need to attend expensive seminars or buy dozens of trading books, to become a consistent trader. That’s the good news. The bad news for many however is that there are no shortcuts.

What is required most of all are the qualitative aspects of trading: determination, diligence, consistency, and discipline. Trading is an acquired skill and not a academic one. As such it’s much more comparable to playing the piano than studying for an exam. The educational aspects are of course an essential part of it, but just like studying the law doesn’t make you a good lawyer, reading books on how to trade doesn’t make you a good trader. You simply become a good trader by trading, and by making many small mistakes. By following a simple set of rules which we post here on a daily basis and have been doing so over the past eight years.

2017-03-01_gold_update

Gold was unfortunately taken to the woodshed overnight and our campaign ended before it managed to get out of the gate. We raked in 1.5R plus minus here which ain’t bad but not what we had hoped for.

2017-03-01_silver_update

Silver on the other hand is still in the running and I’ve advanced my trailing stop to < 18.275. It either gets going now or most likely we’ll see another visit of those daily NLSL near the 18 mark. Where I incidentally may enter again if conditions favor it.

2017-03-01_corn

Corn is a potential long here but not just yet. I’m waiting for a pronounced spike low preferably followed by a retest. Reason for my interest in a long position is the daily panel which requires little explanation.

2017-03-01_AUDUSD

AUD/USD joined gold in the woodshed and I’m actually re-entering here, which is something I very rarely do. My justification is technical of course and based on the daily panel which shows us a touch of two Net-Line Sell Levels (NLSLs) as well as the still rising 25-day SMA. If that won’t hold then the Ozzie Dollar is most likely going to slide to 0.76 or lower.

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Published at Wed, 01 Mar 2017 14:00:52 +0000

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TheWire

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