Of all the day types formed by the natural ebb and flow of market participants, no type elicits strong emotions from traders like the Neutral Day. And when you examine the formed structure and think about it rationally it makes sense. Keeping a cool head during a neutral print often affords you an opportunity to enter long or short at favorable intraday prices. It can also mean the difference between showing some brass when you need to instead of capitulating at the worst possible moment.
Yesterday and today were both of the neutral variety. Yesterday was an opportunity to squeeze out the shorts before heading lower, and today might have been the markets best shot at shaking off some weak longs before heading higher. This much is for certain—two neutral days, printing opposite one another in unison is a powder keg of potential energy for the next move.
I am nearly 100% long into what may be the biggest move of the summer, sword out and shield on my back.
If you want to learn more about days types, in particular the neutral print, stay tuned, for I have something very exciting in the works.
I continued my efforts to add value on Twitter today via my handle @TwoSmuth. Why not throw me a follow or retweet? See below:
When the NQ and ES both go neutral, don't chase your own tail into the hole
— Raul (@TwoSmuth) August 5, 2014
No complaints about "rigging" when the tits are ripped off this selling. You have been warned.
— Raul (@TwoSmuth) August 5, 2014
Be sure to pay close attention to tomorrow morning’s context read, it should be pretty clear where the battle lines are.
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Riding god damn jet skis and raining trim.
Raul, I think tomorrow will finally be the day… MOAR Bounce https://www.youtube.com/watch?v=BonCLU297hM