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Synapsetrading

S&P 500 (Weekly Chart) - Will We See a Crash in 2019?The last few weeks saw a large correction in the stock market (which netted us some handsome profits from our short positions), and after the extreme sharp selling, this week we are seeing a rebound in the market. But the main question on everyone's mind now is whether the market will continue falling in 2019, or whether it has seen a temporary bottom and will continue to make new highs? In my chart, I have plotted a possible bearish path of the stock market, and the red box shows the duration of the 2008 crash. If the current crash has the same duration, we can expect to see the bottom in Q1 of 2020, meaning 2019 will be mainly bearish. Alternatively, prices may continue to rally (dotted line) to test prior highs or form a H&S pattern, giving the bull market one more bullish leg. Personally, given the current climate, I see more bearish (rather than bullish) catalysts in the future, hence I am more inclined to be bearish. I will continue to use CFDs to swing trade the S&P 500, but I am also preparing a warchest to buy stocks for my long-term investment portfolio. In the following days, I will be publishing a blog post with my full watchlist and the prices which I plan to buy. Stay tuned!
SP:SPXShort
by SynapseTrading
1
S&P 500 (Daily Chart) - Aftermath of MidtermsOver the past 2 weeks, we saw a very strong rebound from the selldown, but the big question is whether this is a temporary rebound or the start of a larger downtrend. I think the key level is the yellow zone I highlighted, because if prices manage to break below it, then the downtrend is confirmed. Currently, I expect a lot of sideways trading in between this support zone and the price swing highs, and bulls and bears battle it out to see who will emerge victorious. Personally, I am more inclined to the bearish side.
SP:SPX
by SynapseTrading
NXD/USD (Daily Chart) - Resisted by the 200-Day EMAAfter breaking the neckline about 4-5 months ago, this pair has been mostly bullish, but in the past 1 month it has shown a strong rebound back to the breakout point. Now, it is being resisted by the support-turned-resistance and the 200-day EMA, and if prices are unable to cross those, then it is likely that the bearish trend will continue. Based on the price projection of the rectangle pattern and prior low, a good target would be near the 0.62 region.
Short
by SynapseTrading
GBP/CHF (Daily Chart) - Bears Coming Back In?This pair has been on a long-term downtrend since 2000, which means that long-term position traders will generally be looking for large pullbacks as a shorting opportunity. After an attempt to push prices up, the move has has failed at the neckline, currently forming a double top which may be the start of a swing downwards. The recent large bearish candle could be a good trigger to take a short position, with a stop above the candle.
Short
by SynapseTrading
1
EUR/JPY (Daily Chart) - Sideways Meandering This pair is somewhat erratic, in the sense that it is moving sideways in a large range, making it hard to trade, especially now that it is in the middle of the range. Generally, for large ranges, the best strategy is to buy low and sell high. Based on the recent price action, it is possible that it make have another leg of down movement to the long-term support level. The R/R at this point is good for a short trade, and I will look to go long at the support when the time comes.
Short
by SynapseTrading