This is a tough, tough tape — not for beginners. If I was all in on my trading account, I’d be having a meltdown right now. Instead, I am long SOXL and semis are doing just fine.
But the point remains. Buying into a tape with such poor technicals is very risky. You’re better off waiting for higher prices and when the technicals are better, than catching knives and trying to time the bottom.
That being said, there are two things to look for that can move markets.
1. China trade deal.
2. The Fed slowing down on ruining the economy via rate hikes.
At the moment, I am bullish for today’s tape — because of the semis. I am very curious about natural gas prices and find the overall market to be difficult and disgusting. Hence, I have 70% of my trading account in cash.If you enjoy the content at iBankCoin, please follow us on Twitter