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For now, I am welcoming the price action this morning. Generally speaking, V-shaped moves do not suit my style particularly well, and I am happy to see things cool off a bit. If we are going to make a major higher low before another leg up, then this will be the last bit of patience required before loading up the truck with longs. However, and I cannot stress this enough, complacently assuming that we make a higher low is a huge mistake and has cost traders enough capital over the year to start several stock exchanges across all of the third-world countries on the planet. Thus, critical spectating is still my main task. Also note that a consequence of the market rising in a virtual straight line recently is that we can fall quickly into that air pocket.
Again, if you have already become heavily long then respecting protective stop-losses should not be disregarded now simply because many traders are so sure that we have bottomed. In reality, even if we have truly bottomed, we can still go back down and probe the lower end of the multi-month trading range again before turning higher. For heavy longs, that would entail a massive amount of pain from these levels.
I am currently looking at 1200 as being the first major line in the sand on the downside.
love your pics!
and it’s the 10th day to this rally and we haven’t seen any follow up day with strong volume that imo suggest we need to see a new bottom. i’m down right now on my $tza 2 points because i was too stupid and avg too soon. but hope that by the week end things will look differently.
as for now seems to be that the 5dma is holding but probably we’ll lose that fight later on.
LOL, I was expecting the Dr. Seuss Red, Ed, Ned and Ted in Bed !!!
Nice pic, but does the collar match the cuffs?
lol
Is that like the carpet matching the curtains ?
exactly