Trading Ichimoku

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.

SPX has been dropping over the last few days.

Mostly driven by negative news from Europe rather than the issues over at the Super Committee.

Despite, the drop and the light trading volume during the last 3 days, SPX bullish trend is still intact.

With about 1 month to go, and the SPX trading at 1160, it presents an opportunity to take a long position going into the year end.

From the Ichimoku Daily Chart, we can see

1. Despite the bearish cross from Tenkan sen and Kijun sen, SPX is still trading above the kumo which suggest bullish trend is intact.

2. For the trend to hold, we need the rebound to stay above 1183 going into December.

Beyond December, it is not clear if SPX will clear 1240. It may also fail to pierce through 1240 in the new year.