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Trend trading with Ichimoku 

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$GS . ‘W’ face resistance

Feb 2, ’12 11:59 AM

It has been challenging to get some wins off short position with this market that still refuse to retrace.

Here’s another setup that I am looking to short.

We can see from the chart that :

1. A ‘W’ is forming on $GS . However, it is facing resistance from the Chikou Span way back from November 2011.

2. At this moment, this is not a good time to establish a long position as it has run up by so much. We can see from the RSI that it is reaching ‘overbought’ situation and the Force Index has shown that it is in bullish territories for quite some time.

 

Next, we can see from the Weekly chart that $GS is still trading below the kumo; a sign that it is still bearish.

We can also see that the Chikou Span is about to hit the price level ‘forming the W’ follow by the Tenkan sen and Kijun sen on the Weekly Chart.

I will look for a short vertical call spread for $GS and hopefully, it goes as planned.

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EUR/USD : Kumo resistance and support

Feb 1, ’12 12:50 PM

From the above Ichimoku Daily Chart, we can see that EUR/USD fails to breakout of the thick kumo resistance.

This reflected the issues that the Eurozone is facing.

However, we might want to take note that the leading kumo is showing possible signs that the trend may turn.

Do note the support from the Tenkan sen at around 1.305

We can see how it corresponds to the support in the 15min chart from the Chikou Span

My short term bias is bearish on the Euro and believes that the level will be breached.

Vested with short position.

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$VIX . Watch it.

Jan 26, ’12 10:29 PM

I am still short on the market and is losing money now.

However, I am also wary of what’s going on with VIX.

VIX is now around $18.31 . The lowest from the chart is $14.27 in April 2011.

In July last year, VIX spike from $14 all the way to $40 within one month.

Greece was supposed to have finalised various agreements since last Friday and ‘legalised’ by this Monday.

That timeline has come and go. There is still no agreement in place. The losses that investors have to take is still not known yet.

If one has not established any Long position yet, I don’t think this is the time to go in.

Judging by the movement of the market, I maintain my view that the market can’t go up further by Feb. Keeping my fingers crossed.

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