Weekly Recap: I should give bulls more respect when it comes to making a comeback. Looking at last weekend’s entry I was ready to call it a game over for the bulls for at least a little while, but I left a glimmer of hope with a small positive divergence on the daily chart. Well the bulls did not hesitate to take advantage of the opportunity this week staging a very impressive Santa rally to new highs. We now have a negative divergence on the weekly chart but with no corroboration on the daily yet and since the next two weeks are short weeks I am going to assume the uptrend will continue until early next year, after that we will see.
In the short term the system currently holds a 60 min reversal long position but it also issued short signals on both intervals, so taking into account the above daily trend I assume any pullback should be to one of the trend lines and create a reversal signal.
Battle Plan for the 12/23/2013
60 min reversal stop under 180.94
60 min short under 180.94
120 min short under 180.35
* Stop loss lines should be triggered if there is an interval close above them (i.e. 60 min or 120 min ), they are published in the daily blog and updated during trading hours on twitter.
* Take profit lines should be triggered immediately when crossed, they are usually issued during the trading day on twitter.
* Entry signals should be triggered when crossed, but take into account that until there is a confirmation (i.e. close of the interval across the entry signal) , the signal can become a reversal signal.
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