Great month May for me. I am an old school trader and sell in May worked as a charm… I will make a long story short. Bulls will be crushed and it just started. Lets start with S&P and Dow.
Finally the indices in Wall Street are under the 50 days moving average and for good. A couple of attempts to regain the average failed miserably. The dip buyers had to swallow hefty losses and soon I reckon will capitulate. Market makers tried to pull up the indices with “rumors” and who had fallen in love with dips buying are leacking their wounds. Fact: tariffs are in place without resolution in sight (actually the fight escalated already) and China is starting to show the muscles. Macro data in Europe are weakening by the day and central bankers are starting to lose the clue.
Dax has been keeping over the 12000 mark and the 50 DMA. Until today. It was pretty clear in my mind the rejection of 12450 level (see pic one), a double top on an important resistance. Here i decided to play just on the short side. Amen. My trades has been mostly winners has I kept losses from the (inevitable) pull backs to a minimum.
The main long trend line (green) was broken a while ago and current price is testing the lower line of the wedge (blue lines in pictures) at around 11930. I have currently a short trade opened at 12155. Have taken half size profits at 11960 and added again a new position when price went back to 12000. My current stop losses are positioned at 12055. I count on closing this position at 11705 where I see the major cluster of resistance.