60 Minute timeframe buy USD/JPY

This snapshot shows the basic setup that I try to take advantage of. Right now my trading is discretionary but I try to stay close to my trading rules, though more often than not I open position before the right time.

Here you can see 5 events that make it a good setup in my opinion:
1. Short lived bullish crossover of EMA20 over EMA50
2. Subsequent pullback forming higher low
3. Bullish MACD crossover
4. Net upward pressure forming right side of cup
5. Bar close above the downtrend line

A reasonable stop is 92.82 and target could be 94.80. Lets see how this trade turns out.

Disclosure: Long position in USD/JPY

QQQQ signals

Today QQQQ is showing 3 signals of near term top:

• RSI curve trying to move below the overbought region
• A doji on the daily candlestick chart
• MACD crossing the signal line from above

These 3 signals together suggest that the market might be ready for another correction. Whether this area becomes 'THE' top for a longer term remains to be seen.

Disclosure: No position in mentioned security.

USO Below Intermediate Term Trendline.

After repeated attempts to cross $39 mark, USO finally closed below the intermediate term trendline. MACD is also confirming waning momentum. Considering the weakness in the broader market and the strength in US dollar, its not surprising at all. Before opening a short position, it would be better to wait for a rally, which reverses at the trendline, confirming start of the down trend.

Full Disclosure: No position in USO.

Divergence in Shanghai Composite.

Since Aug 19 low, Shanghai Composite has climbed a bit but this rise has not been confirmed by MACD resulting in a divergence. Hence, we need further evidence to be confident of a reversal in current (short term) down trend, or continuation of this trend to become intermediate or long term down trend.