SHORT KSU @ $84.61 Stop @ $87.18
- Thread starter eganon69
- Start date
Its selling off the news of Ford's announcement to not build that plant in Mexico. Apparently that was a big deal for KSU.
Well that would explain it. But that would also explain why it showed up on the charts before it was announced on the news. SOMEONE knew about this and that's what is reflected in this bearish looking chart. Whatever the reason I could care less. I just want to know enough to be able to trade off it. It's the actual analysis of those charts that makes TA worthwhile. Blindly following an indicator or moving average is not helpful. That's why I have said this is not a simple thing. It requires thousands of hours of watching price and charts to analyze it well more often than not.
I was curious about that too. The weakness in the chart started on Nov 9th....it went from a high of $93 on 11/8 to a low of $79 on 11/9 ..... reason being 91% of their revenues are derived from cross border trade with Mexico.
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I suppose. Whatever the reason I was once again correct on price plummeting soon and I am capitalizing on that.
I am not sure how much more I will be updating this and the SHORT on AMZN trade. Both are clearly profitable and have made the moves I called for based on the charts. For now I plan to move my stops to a profitable level on both of these but could be in these trades for days to weeks more depending on price action and charts. I doubt I will be updating daily anymore.
Good luck. Trade what you see,
Eganon
I am not sure how much more I will be updating this and the SHORT on AMZN trade. Both are clearly profitable and have made the moves I called for based on the charts. For now I plan to move my stops to a profitable level on both of these but could be in these trades for days to weeks more depending on price action and charts. I doubt I will be updating daily anymore.
Good luck. Trade what you see,
Eganon
If anybody has made a strong case for T/A and its effectiveness, its you EG.
I'm hard to impress and you did.
We'll have an award waiting on the Annual ET Cruise.
LOL. Thanks man, I appreciate the kind words. I was not aware that there is an ET Cruise. I doubt I would go but its interesting to hear there is one.
I think TA gets a bad rap because people think its all about some indicator and follow it blindly. People need to just keep an open mind. Although I heavily favor certain indicators I can trade most things with no indicators at all at this point. My indicators just help confirm my trade ideas and pin point buy and sell prices for me. The thing I LOVE about TA is that I can look at any chart and in 10-15 sec tell you whether its a buy, sell, or hold. That cuts through all the bullshit of news and earning and fundamentals in 10 sec. Once you determine that then its MUCH harder determining an actual price to buy and sell to maximize profits. Of course practicing appropriate risk management is a large part of it too.
I hope I have at least shown to you and maybe a few others over the last several weeks that using TA can be quite profitable and can at a minimum keep you on the right side of the market so you are not SHORT in an uptrend or LONG in a downtrend.
I still plan to post just not as detailed and not as many trades or charts as I have done over the last several weeks. Need to get back to refining my methods more.
39 day EMA.... not sure why you picked 39 instead of 38 or 40.... but wtf.... I have 3 monitors with the 39 day EMA on them now when I switch to charts because of EG. If that f'r is pointing up... no shorty in Zandyland.
LOL.....There is a pretty good reason for it. There are 6.5 hours in a trading day. 5 trading days in a week. I just added one more trading day to make sure the EMA covers just a bit more than the weekly trend. So take 6 trading days and multiply by 6.5 hours a day = 39 hours. Also EMA 20 and EMA 50 are frequent areas of support (39 is just between those two). 39 days is about 7 weeks of trading so it helps tell what is going on over 1.5-2 months of trading. I have found it to be highly reliable. NOT PERFECT but just a reliable "indicator" to keep anyone on the right side of the market at >90% of the time in my opinion. NEVER SHORT when WEEKLY EMA 39 is pointing UP and NEVER go LONG when WEEKLY EMA 39 is pointing DOWN. There are exceptions but that's where the thousands of hours of watching price and charts comes in. Even though I am laying this out as simply as possible most here will still screw this simple rule up. Go back and look at your failed trades over the last 3 months and tell me what % of them were you disobeying this simple rule. I bet its >90%. Someone could say well this will lead to whipsaws when the market is consolidating. That is true but usually that means WEEKLY EMA 39 will be mostly a wavy flatline. The DAILY EMA 39 will whipsaw, not usually the WEEKLY EMA 39. Pick trades where WEEKLY EMA is rising at >30 degree angle or falling at >30 degree angle. This is NOT a magical indicator. Its just a simple reliable rule to make sure you are not trading against the trend. I want trades that are moving UP or DOWN. So I look for trades where WEEKLY EMA 39 is rising or falling and NOT flat. If its flat I move on.
That is probably the BIGGEST single pearl I can give anyone. Its up to you to fill in the rest of the rules but I have given several throughout my posts.
Trade what you see,
Eganon
That is probably the BIGGEST single pearl I can give anyone. Its up to you to fill in the rest of the rules but I have given several throughout my posts.
Trade what you see,
Eganon
probably a buy here in low 82s Move outweighs story