Checklist Trades in Stocks, Gold and FX

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by James Helliwell, Chief Investment Strategist

Hello traders,

I hope you’ve had a good week. In last week’s blog I shared a few of the latest Checklists from our Monthly Report and also the key setups in equities, gold and the yen. Although we analysed all three markets, we determined that the latter was probably the one to omit in this month’s theme of focusing on the quality rather than quantity of your trades. I showed you how our Checklists helped us to do this by filtering out the noise and  to gain greater conviction in particular markets through confluent scores. Here’s how things have since played out…

In equities, the S&P 500 recorded a new high on Monday, within touching distance of 3350. This came as little surprise given the positive score of +3.5 on our corresponding Checklist. However, the selling that occurred through Thursday seemed to contradict this score and ultimately provided a further buying opportunity on the ‘oversold’ hourly RSI.

Here’s a reminder of how that Checklist looked heading in to October.

For gold, we saw a similarly positive score following a period of consolidation last month.

Here’s a chart of the spot price (XAUUSD) on Bloomberg, which also presented a buying opportunity at around 1890 on an oversold RSI earlier this week. As you can see, gold is around 20 dollars higher since then, and looks to be in something of an accumulation phase.

Lastly, here’s the yen. The positive score of +2 favoured owning yen, which was aligned with the correlation to gold as a similar safe haven. However, it did compete with the positive score seen in equities, which tend to be inversely correlated (or positively correlated to USDJPY).

Whilst we chose to look beyond this trade last week, we did note that an ‘overbought’ hourly RSI might be a sufficiently tempting setup to try a tactical USDJPY short (long yen) trade. Unfortunately the market gods were not kind enough to extend that to us, although price did correct quite sharply from 106 as the yen strengthened towards 105.

There were of course plenty of other new setups that we highlighted to members in this week’s Trading Club video analysis. Here’s one of those in the Euro, which following something of a bounce in the dollar index (DXY) off last week’s lows, is now displaying signs of positive divergence on the hourly RSI.

And as you’re all well aware by now, there’s no way we would even consider the trade without referring to our Checklist for confirmation. With a positive reading of +1.5, this setup might prove to be one of the ‘quality’ ones I mentioned at the beginning of this post…

Time will tell how it all plays out!

If you would like to join us for our analysis in real-time including new insights each week, or learn from the ground up with online tuition from Lex in our MDT online course, then head to and take your financial knowledge to the next level right away!

Have a great weekend,


Disclaimer: For educational purposes only. Even though we do our best to provide reliable data, you should not trade based on this information. For more information go to

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