Monthly Archives: April 2017

$UNH vs $CI $Pairs Trade Battle. Who is winning?

Posted on April 30th, 2017 by

$UNH vs $CI $Pairs Trade Battle.   Who is winning?

One of the hidden strategies most people don’t talk about is “pairs trading”.   Some people talk about it but still the concept is not done right.   I learned this powerful strategy in the institutional world.

What is pairs trading?   Pairs trading is a hedge based strategy.    The goal is to trade one instrument and hedge with another instrument.    For example, if you like to trade Apple stock, you buy that instrument.   To hedge it, you should sell their major competitor.    As long as you limit your risk and make sure you get a 3:1 ratio, you will make money.   This strategy is executed every quarter so it starts to create a “residual” income every quarter.

The key is to make sure at least one of the instruments move in your direction.  To do this, we use technical analysis to determine the following:

Which/When instrument to buy Which/When instrument to sell

This month, we are going to look in the $Healthcare industry for a $pairs trade.   The two companies are $UNH UnitedHealth Group Inc and $CI Cigna Corporation.

We will step through the …
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$UK Stock Market Trade of the Week CPG-LON

Posted on April 30th, 2017 by

$UK Stock Market Trade of the Week $CPG-LON 5 time frame buy opportunity.  On April 26, we received a 5 Timeframe Ichimoku Buy Email alert for CPG-LON, Compass Group PLC.  Here is the email alert received.

Our trading plan allows us to trade Strategy #4. We chose the trade the 240 minute timeframe.  Below is the chart provided by Esignal.

With CPG making reaching its all time high we wanted to keep our risk low. As we had IMTF™ resistances at 1523.74 and 1517.19 we setup a pullback trade at these values with a target value of 1540.16 giving us a reward/risk ratio of 3:1. We entered the trade shortly after. Here is the result.

We got to our target and exited with a profit.

If you would like to learn how to trade like an institutional trader or learn more about our multi-timeframe email alerts, go to www.ichimokutrade.com or email us at info@eiicapital.com

EDUCATIONAL USE. Commodity Futures Trading Commission, Forex, Futures, Equity and Options Trading has large potential rewards, but also has large potential risk and may not be suitable for everyone. You must be aware of the risks and be willing to accept them in order to invest in these markets. Do not trade with money you can not afford to …
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$NIFTY Indian Stock Market Update. We are approaching next resistance fast!

Posted on April 30th, 2017 by

$NIFTY Indian Stock Market Update.   We are approaching next resistance fast!  The Indian stock market has been on a strong bullish trend lately.   Will it continue to go is the major question everyone has?    We will allow technical analysis to tell us this for our monthly India market update.

Note:  All charts are provided by TradingView for this article

Below is the monthly chart

Since Feb 2004, the India stock market has been in a long term bullish trend.   It has gone through consolidation pattern and major pull backs but that bullish trend still has remain intact.    Since 2015, we reached a high and formed a big consolidation patter from 6854 to 8899.

The market continues to make new high’s with April following through after breaking the resistance at 9000.     Supports are going higher and price is getting close to the next resistance at 9455.35.

Below is the weekly chart:

The chart confirms the monthly timeframe.   The bullish trend is very strong.

Below is the daily chart:

The daily chart is bullish with a major support at 9220.30.    As long as this support holds, there is a high probability …
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$Europe Stock Market Monthly Update: Germany, France, UK

Posted on April 30th, 2017 by

$Europe Stock Market Monthly Update: Germany, France, UK.   Europe is going through a transformation and is represented by various countries from Germany, France, Italy, etc.    We will analyze the $SX5E-STX, Stocxx 50,  Germany DAX ($DAX-XET), France CAC40 ($PX1-EEB) , FTSE 100 ($UKX-FTSE).

Note:  All charts will be provided by eSignal.

STX Stocxx 50 ($SX5E-STX)

The STX Stocxx 50 is the index that represents the 19 counties that have adopted the Euro.   Below is the Monthly chart.

Since 2008, price has been enter an “ugly” consolidation pattern between 2122.92 and 3838.21.    The top of the consolidation pattern resistance was established in 2006 and we have tested it 3 time already.    The last time it was tested April 2015.  After testing this resistance again, price didn’t go back and retest the low.   Instead, it has been testing the middle of the consolidation pattern.    This is a bullish sign.

Since last month update, the support has moved up to 3265.86 now.

Below is the weekly time frame:

The weekly time frame is in a bullish trend where the breakout triggered March 6, 2017.  The resistance of 3519.14 was broken this month and next resistance …
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Futures – Monthly Update for May

Posted on April 30th, 2017 by

Futures – Monthly Update for May

We encourage traders to diversify their portfolios and it is something we will continue to do. We continue to put a special emphasis on trading Futures products and here we take a detailed look at the major products in this category from Equity Indexes, Energy, Metals and more. We will continue to track these on a month-to-month basis and provide our views. Below is a table summarising various Futures contracts as of close of market on April 28, 2017.

If you would like to learn how to trade like an institutional trader or learn more about our multi-timeframe email alerts, go to www.ichimokutrade.com or email us at info@eiicapital.com

EDUCATIONAL USE. Commodity Futures Trading Commission, Forex, Futures, Equity and Options Trading has large potential rewards, but also has large potential risk and may not be suitable for everyone. You must be aware of the risks and be willing to accept them in order to invest in these markets. Do not trade with money you can not afford to lose. This is neither a solicitation nor an offer to Buy/Sell. No representation is being made that any account will or is likely to achieve profits or losses similar to those discussed on this document. The past performance of any trading …
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$STI-SES, $200-FTSB, $N225-NKI: Asian Stock Market Monthly Update

Posted on April 30th, 2017 by

STI INDEX:

$STI-SES Singapore Stock Market Monthly Update.   Since June 2009, the Singapore stock market has been in a consolidation pattern between the low region of 2528 and the high regions of 3548.   This monthly update will analyze the market to see the current state of the market.

Below is the MONTHLY STI index based on esignal chart:

As you can see, on Mar 2017 it broke a resistance level @ 3146.89. This month, that resistance has become the support and the next resistance is @ 3205.62. March 2017 also was the month where it turn from Bearish to Neutral.

Let us look at the Weekly chart. Below is the Weekly STI index based on esignal chart:

By zooming in to the weekly chart, we can see that price has been trying to break the weekly resistance of 3179.47. However, it has been stopped by that level 6 times in the past 7 weeks. Until it breaks this level, it will ping pong between the weekly resistance and monthly resistance.

Next, we head down to the Dialy time frame. Below is the Daily STI index based on esignal chart:

Daily shows a strong bullish movement with a …
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$NG Natural Gas Futures Trade of the Week for the Week Ending April 21

Posted on April 23rd, 2017 by
Week ending April 21 - Natural Gas

$NG Natural Gas Futures trade of the week for the week ending April 21. On April 20, we received a 5 Timeframe Ichimoku Sell Alert for the Natural Gas Futures. Here is the email alert:

Our trading plan indicates that we can only take strategy #4. Therefore, our trading timeframe was 120m.

Below is the 120m chart provided by TradingView.

At the time of this email alert, I had the option of looking for either a bearish breakout or a bearish pullback trade.

Due to an inadequate Reward:Risk, I did not take the breakout. I then assessed the bearish pullback which had an IMTF™ resistance and was providing me a Reward:Risk of 8!

Price eventually got to my entry level and held the IMTF™ resistance level I identified. It then moved drastically lower to hit my initial target (preserve mode) and continued to move lower and provide me a greater profit!

 

If you would like to learn how to trade like an institutional trader or learn more about our multi-timeframe email alerts, go to www.ichimokutrade.com or email us at info@eiicapital.com

EDUCATIONAL USE. Commodity Futures Trading Commission, Forex, Futures, Equity and Options Trading has large potential rewards, but also has large potential risk and may not be suitable …
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$UK Stock Market Trade of the Week TPK-LON

Posted on April 23rd, 2017 by
2017-04-20_TPK email

$UK Stock Market Trade of the Week $TPK-LON 6 time frame buy opportunity.  With another short working week few opportunities presented themselves. On April 18, we received a 6 Timeframe Ichimoku Buy Email alert for TPK-LON, Travis Perkins.  Here is the email alert received.

Our trading plan allows us to trade Strategy #4. We chose the trade the 240 minute timeframe.  Below is the chart provided by Esignal.

We had IMTF™ resistances at 1509.54 and 1505.42 we missed the pull back which would have given us a reward/risk ratio over 3:1. However, we setup a breakout entry at 1557.12 with a preserve target of 1680 giving us a potential reward/risk of 3:1. We entered the trade on the 19th. Here is the chart.

We are currently in the trade managing our stop.

If you would like to learn how to trade like an institutional trader or learn more about our multi-timeframe email alerts, go to www.ichimokutrade.com or email us at info@eiicapital.com

EDUCATIONAL USE. Commodity Futures Trading Commission, Forex, Futures, Equity and Options Trading has large potential rewards, but also has large potential risk and may not be suitable for everyone. You must be aware of the risks and be willing to accept them in order to invest in these markets. Do …
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$KLS Malaysia Stock Market trade of the week$1155-KLS 5 timeframe Buy

Posted on April 23rd, 2017 by
1704_5TF_1155_BO_Alert

$KLS Malaysia Stock Market trade of the week $1155-KLS 5 timeframe Buy.   On April 17 we received a 5 Time frame Ichimoku Buy Email alert for $1155-KLS, Malayan Banking BHD for the $KLS Malaysia stock market.   Here is the email alert received.

Malayan Banking BHD has been consolidating for around 14 days/28 240minute price bars. Patience is the key to this business.   Sometimes it better to be at zero than to be negative. Some weeks you can have a lot of break out trades. Some none. However, we still need to be vigilant and attentive towards the email alerts, they are usually the ‘early warning’ system to us on incoming breakout trades. Below is the 60m chart provided by eSignal.

From the chart, the vertical line indicates the time and date that we received the email alert. The entry for the bullish Breakout is 9.06. The initial stop is 8.95 and the preserve mode we set for this trade (breakout is usually a 1:1 Reward Risk Ratio) is at 9.22, which there is a clear resistance at that level. On the 20th Apr, we have triggered our preserve mode and currently have tighten our stop. We are currently on a free …
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EIX: SP500 7 Timeframe Ichimoku Email Alert for the week ending Apr 21

Posted on April 23rd, 2017 by
1704_7TF_EIX_PB_Alert

EIX SP500 7 Timeframe Ichimoku Email Alert for the week ending  Apr 21.  On  Apr 17, we received a 7 time frame Ichimoku Multiple time frame email alert at www.ichimokutrade.com.   Here is the email alert:

Based on the 3 Step Trading Plan published earlier. (https://www.ichimokutrade.com/c/?p=10431), we looked at a iMTF Bullish Pull Back Trade on a 30m time frame provided by eSignal.   Here is the chart setup:

There is a 60/30/10 iMTF™ Support@80.46, which is also our entry. Initial stop is 80.31.  Our target will be the previous pivot High @ 80.91. Now, the reward risk ratio was a 3:1, hence we decide to take the trade as it did fit our trade plan. The trade has been triggered on the 17 Apr and was took profit on 18 Apr.

If you would like to learn how to trade like an institutional trader or learn more about our multi-timeframe email alerts, go to www.ichimokutrade.com or email us at info@eiicapital.com

EDUCATIONAL USE. Commodity Futures Trading Commission, Forex, Futures, Equity and Options Trading has large potential rewards, but also has large potential risk and may not be suitable for everyone. You must be aware of the risks and be willing to accept them in order to invest in these markets. Do not trade with money you can not afford to lose. This is neither a solicitation …
Read More >>