$SPX : Watch out for the kumo twist

Dec 20, ’11 5:43 PM

In my previous post, I was hoping for 1218 to hold. The market open below 1218 and I did not manage to get a good confirmation to go long.

The market has continue to be weak since.

Even as the futures is now up on German business confidence, the bearish sentiment remains.

On the Ichimoku chart, we can now see that the leading kumo may be twisting. This is a sign that the trend is changing.

Moving forward into the new year, I will be very careful going long. With the price level now within the kumo and yesterday break below the Kijun sen (trend line), the bearish signals seems to be coming together.

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$SPX . Kuo support for a year end rally.

Dec 14, ’11 9:09 PM

http://stockcharts.com/h-sc/ui?s=$SPX&p=D&b=5&g=0&id=p80947301804

With 2 more weeks towards the year end (and possible window dressing), $SPX is offering a good opportunity for a short term long entry.

From the Ichimoku chart, we can that $SPX is sitting right on top of a fairly thick kumo support at around 1218.

The base of the kumo is flat which suggest that the price has consolidated at this level with a hint from the leading kumo that it is striving to break through and continue the uptrend.

I will look for an entry with a target of 1280 with a 2 weeks to 1 month timeframe.

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$SPX . Taking profit and resistance at 1260

Dec 1, ’11 11:19 PM

I establish a long position when the market hits 1160. On the chart, it was sitting right on the kumo support.

My long position was established with the belief that the year end rally will materialise and the Euro issues will be sorted out (at least temporarily).

With this strong rebound and a resistance of 1260 ahead, I have taken my profits and close off positions for the year. With this strong rally, there is a high chance that 1260 will be taken in a week or two and the rally will continue till year end.

Thinking back, this year has been a good year for me. I made the most money during the volatile period. It is time for a little celebration.

Throughout December, I will be looking through my past trades and reflect on areas where I can do better.

Here’s wishing everyone a great festive season and a great new trading year ahead.

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