This is a sample entry from Don DeBartolo’s email newsletter, Trade Spotlight: Futures, published on Tuesday, April 10, 2018.
There is a trade opportunity in the Dollar Index futures market. The June 2018 contract struggles to find its footing above the 90.000 price level going back to the start of the year. The Stochastic indicator is showing strong Momentum to the downside. The Trend Seeker is currently neutral and the ranking is bearish. The MACD indicator is shifting bearish as well. The contract closed below the 20-day and 50-day Moving Averages today. Let’s sell the contract on a break of todays low. The downside target is the bottom of the Channel Formation.
Sell the June 2018 Dollar Index futures contract at 89.220 using a stop order, GTC.
Initial Margin = $1,815 Maintenance Margin = $1,650
Stop loss: Place buy stop on 90.020, just above the 90.000 price level and then trailed lower, GTC. (Initial Risk: $800)
Target: Place buy limit on 87.820, near the twelve-month contract low, GTC. ($1,400)
June 2018 Dollar Index Chart from Bar Chart
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HYPOTHETICAL PERFORMANCE RESULTS HAVE MANY INHERENT LIMITATIONS, SOME OF WHICH ARE DESCRIBED BELOW. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFITS OR LOSSES SIMILAR TO THOSE SHOWN. IN FACT, THERE ARE FREQUENTLY SHARP DIFFERENCES BETWEEN HYPOTHETICAL PERFORMANCE RESULTS AND THE ACTUAL RESULTS SUBSEQUENTLY ACHIEVED BY ANY PARTICULAR TRADING PROGRAM.
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