This is my first STAM trade on an equity index – my mentor has asked me to pay more attention to these.
STAM Analysis – Equity Markets
Some have bullish weekly momentum –Japan, all the US indices. Some have bearish weekly momentum – all the European indices. There have been pullbacks on all of the indices last week but they bounced back following the NFP numbers.
Thus we have potential setups on some of these. Dow pulled back and had a strong day on Friday. It was flat yesterday. There are no major news items today. Looks good on the D chart. Tight consolidation on the 4H chart. Trade the S1B setup on FXCM, enter at 16020, stop at 15930, 1st target at 16140 (in front of previous high), let the 2nd portion ride higher and rely on potential “Santa rally”. The S&P and Nikkei also pullbacks but are already at the respective previous highs. The Nasdaq has not had a pullback.