Long, For nowSo, I posted an analysis on the S&P 500 with a short bias.
I am short biased on TSX and S&P, but I think my timing is wrong here. I think we see upside on both the S&P and TSX for now (for now meaning within the next couple of days).
We see the TSX is in a descending channel. It did do this double top type pattern; however, looking back historically, these generally lead to bullish pullbacks to the upside. The telling thing for me here is that it is quite oversold on the Z-Score indicator looking at the 4 hour time frame and it has triggered 2 recent buy signals.
The indicator on this time frame tends to be very reliable for both S&P and TSX.
My game plan here is to long a bounce. Likely entering tomorrow and TP indicated with the red lines, essentially center point on that channel. Very short trade with a conservative target because I don't like holding longs too much in this market.
I will be entering via TSX:HXU with TP return of roughly 5% (trading shares not options here; see image below).
Hoping this works out. It will be the first time I have swing traded the TSX. Haha
Overall I am short biased. I have done a time series assessment on the TSX which I will share in a later post. For now, this is my short and to the point game plan.
That is it for now!
Leave your questions, comments and critiques below!
