"No warning can save people determined to grow suddently rich" - Lord Overstone

  • 19 hours Why Criminals' Cryptocurrency Choices Matter To Average Investors
  • 2 days OPEC ‘Supergroup’ Keeps Oil Exports Subdued
  • 2 days One Belt, One Road, One Direction for Precious Metals
  • 2 days Vicious Trio Keeps Bitcoin in Chokehold
  • 2 days How Infrastructure Is Driving A Commodity Boom
  • 2 days What’s Really Happening With Venezuela’s “El Petro?”
  • 2 days Gold Bull and Bear Markets
  • 3 days 5 Big Drivers of Higher Inflation Rates Ahead
  • 3 days U.S. And China To Face Off Over Aramco IPO
  • 3 days Gold Bulls, Brace Yourselves – Fed Hikes Are Coming!
  • 3 days Stocks Fail to Hold Gains, But Still No Correction
  • 3 days Cryptojacking: A New Threat Vector To Critical Infrastructure
  • 4 days Why The Next Oil Boom Will Be Fueled By Blockchain
  • 4 days 5 Things Investors Should Know About China this New Year
  • 4 days Is The South Korean Crypto-Drama Finally Over?
  • 4 days Miners’ Rally? What Rally? Watch Out for More Fake Moves!
  • 4 days Four Percent 10-year Note Yield Will Be a Floor Not a Ceiling
  • 4 days The End Is Near
  • 5 days 5 Record Breaking Gemstones Even Billionaires Can’t Buy
  • 5 days Irredeemable Currency De-tooths Savers

A Short Term Bottom Could Be In Place

As the market was clearly running out of downside momentum, we decided to cut the 2nd half of our short position at 1280.67 [1334.07 - 1280.67 = 53.4 (gains)].

Looking at our indicator, we can notice they continue improve:

- The Sigma Trend Index (STI) moved from '-32' to '-14'

- More importantly, after 2 days in oversold territory, the Trend Level (TL) moved from 1(oversold) to 2 (negative).

Sigma Table

Looking at the chart, we can clearly see that the recent decline occurred in 5 waves and that the market found some support around December's top.

It looks like a meaningful bounce back could develop from here, but it is too early for going long now.

Sigma Trading Oscillator


We consider the risk/reward isn't anymore in favour of short position. Nevertheless, it is too early for going long in this market.

In this context, we take a wait and see attitude, waiting for a nice opportunity (shouldn't take too long...)

We will open a half long position if/when the market is able to trade during at least 1hour above 1300 or if we get a clear impulse to the upside.

Current position: no position

Have a nice day,


Back to homepage

Leave a comment

Leave a comment

Don't Miss A Single Story