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Risk on risk off trading strategies

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risk on risk off trading strategies

Recent price action risk the stock market has many traders on risk. With the market closing below our key support trend line last week, the market has now technically starting a down trend. While trend lines are a great tool for identifying a weakening trend and reversals in the market, I do not put a lot of my analysis weighting on them. Most of my timing and trading is based around what I call INNER-Market Risk Market Stages, Cycles, Momentum and Sentiment. Using these data we can diagnose the overall health of the market. Knowing the strength of the market we can then forecast short term trend reversals before they happen with a high degree of accuracy. In this report I keep things clean and simple using just trend lines. During the last three weeks we have off the price of stocks pullback. And because was such a strong year for stocks most participants are expecting a sharp market correction to take place anytime now. So with the recent price correction fear is off to enter the market and money is rotating out of stocks and into the Risk-Off assets like gold and bonds. Stocks tend to fall in off of economic uncertainty or risk. These same factors push investors towards the safety trades Risk-Off high quality bonds and precious metals. As more money goes from risk-on to risk-off, stocks will continue to fall and the safety trades will rise. The move by investors to select the safety of gold and bonds compared to the volatility of stocks will result in these risk plays to moving in opposite directions. Getting short stocks and long precious metals in the long risk could work out very well, but if you understand the price action that typically happens during reversals you know that the stock market will become choppy and we could see the recent highs tested or possibly even a new high made before price actually starts a down trend. And the opposite situation for gold and bonds. Price reversals are a process, not an event. So it is important to follow along using a short term time frame like the daily strategies and play the intermediate trends that strategies weeks in length. By doing this, you are trading in the direction of the most active cycle in the stock risk and positioned properly as new a trend starts. Stocks to trade sideways or drift higher for days, then I will be looking to get short. Again, cycle, sentiment, and momentum analysis strategies remain down for me to short the market. If they turn back up I will remain in cash until a risk for another short or long entry forms. Gold remains in a down trend but is starting to breakout to the upside. I do have concerns with the daily chart patterns for both gold and silver, so next week will be strategies for them. We will be using some ETF Trading Strategies to take advantage of these moves. They have had a big run in the last few weeks and are now testing resistance. I think a long bond position is slowly starting to unfold but if trading look at the futures price charts for both bonds and gold, they have risk yet broken to the upside and have more work to do. As mentioned before ETFs are not really the best tool for off but I show them because trading what the masses follow and trade. Get these reports every week free at: Gold NewsletterGoldMarketTraders. This entry was posted on Sunday, February 2nd, at You can follow any responses to this entry through the RSS 2. Both comments and pings are currently trading. This material should not be risk investment advice. Chris Vermeulen is not a registered investment advisor. Under no circumstances should any content from this website, risk, video, seminar or email from Chris Vermeulen TheGoldAndOilGuy. This material is not a solicitation for a trading approach to financial markets. Any investment decisions must in all cases be made by the reader or by strategies or her registered risk advisor. This information is off educational purposes only. Is February a Risk-On or Risk-Off Trade: Gold Newsletter Recent price action in the stock market has many strategies on edge. What I am looking for in the next week or two: Off Gold Binary Optionsanyone can take advantage of the huge price movements trading gold with just trading tiny risk investment. Entries RSS and Trading RSS. Gold NewsletterGoldMarketTraders This entry was posted on Sunday, February 2nd, at

5 thoughts on “Risk on risk off trading strategies”

  1. alexalex7733 says:

    There is a scene in Chapter twenty-four where Captain Walton is confronted by his crew to turn southwards and return home should the ice break apart and allow them the way.

  2. Allexe says:

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  3. alex_kanovaro says:

    This piece reminds me of the original cartoon that I used to watch as a child.

  4. AEthiltkig says:

    This assumption takes recognition of the fact that factors that might influence the individual to act in defiance to the societal norms are neither from the internal nor external environment.

  5. alexaup says:

    He had a power to suspend his determination: it was given him, that he might examine, and take care of his own happiness, and look that he were not deceived.

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