We-Spread SP500 vs DAX
Trading Plan for the week 19-23th October 2020
The spread trading between the 2 equity indices shows us, for the third consecutive week, a continuation of the upward curve. The spread has not yet reached such a high level as to be considered at the end of the cycle. This means that the operational choice continues to lean towards the BUY of SP500 against the SELL of the DAX.
Considering the week just ended and evaluating an entry on Monday morning at 9:00, the result was:
- BUY of SP500 in loss of 15 points with -0.4% negative performance
- DAX SELL in profit of 207 pt with +1.58% positive performance
with a net profit of + 1.54%
We believe that following the bullish trend of the spread (BUY SP500 and SELL DAX) can still be a profitable choice.
Trading Room for spread trading
There are 2 dedicated telegram channels for spread trading updates:
We-Spread GOLD vs SILVER
Trading Plan for the week 19-23th October
The Spread curve between GOLD and SILVER according to our We-Spread indicator is directed downwards. However this week we saw a bullish end of the week. For now we continue to target the touch on the lower band of the spread, so we prefer to evaluate SELL GOLD and buy SILVER.
Evaluating an entrance on Monday at 9:00 the results were the following:
- GOLD SELL +1.45%
- BUY SILVER -4.43%
with a net profit of -2.98%
We believe that following the bearish trend of the spread can still be a profitable choice.
Intraday scalping levels
Trading Plan for scalping with Demand & Supply indicator + We-Trend
For users of the levels with We-Trend and Demand & Supply indicator, the week was commented in the new dedicated trading room (currently free for all) thanks to the collaboration with TheUnknowSoldier.
The levels studied with the indicators specially created for scalping such as demand & supply (recently available in the Kumo Breakout package HERE) and with the We-Trend have determined these charts to watch out for next week.
Any intraday comments will be posted on the trading room and, during the week, we will add the updated levels at the bottom.
The trend of the main indices was bearish until Thursday and only on Friday there was a partial recovery. However, the week end shows a bearish trend.
The GOLD also showed a positive correlation to the performance of the share prices with a decline until Wednesday and a partial recovery on Friday.
- For the DAX the first resistance to work on in scalping with tight stops is 13000… above this level we could rethink a bullish structure.
- For SP500 the resistance and key level is 3520… above long below short… with a view to scalping or intraday always with tight stop losses.
- For the GOLD first resistance 1915-1920 and first support at 1890… such levels could be traded in counter trend with tight stops (intraday or scalping levels).
The trades we will make on the levels must be considered on price action patterns and for intraday scalping purposes.