We are very near the ICL in various markets. This will be the time to start into positions which should rally in the months ahead. That said, I don't have to point out that there is extreme volatility out there. We have no traders long stocks, energy or metals currently so we will all begin new positions with weak hands, meaning no trading equity to ride out the volatility. The point I am making is that we will need to begin our new positions small. There will be plenty of time to continue adding to our positions as our hands become stronger and we can hang in there through down days.
Of the three big markets that we prefer to trade, Energy appears the most ready to give confirmations of tradeable lows This morning we are seeing exhaustion candles forming in oil and gasoline. We will soon get swing lows and buy signals from the CCI. Once we have these we need to be buying into the energy space.
In the current political and virus infected environment we will have a lot of volatility. As important as it will be that you step in and buy, it will be just as important to keep your positions small. Just be prepared for when we broadcast when to buy. Plan your trades now so that you won't have an emotional decision to make once you get the call. The margin requirements for the various energy contracts are listed here.
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