Fortunately we were able to catch all the right moves in the market as far as reversals, up and down days. Did you utilize these days to add to, start or clean up positions?
I can give you the ideas, but you need to do the work. Remember, we get paid to take risk, but in Technical Analysis, risk is always measured against the probability of success. The last set of trades I gave you are all at a profit, one over 10% in two days.
This post is one I want you to remember because I DO believe that we are about to see a real opportunity in a move to the down side. Look at the moves up in the market over the last week. Even counting the breakout to new high ground, we are down over 2% and that damage was done pretty much in two days. There is a lot of artificial support that has been propping this market up, but it's either crumbling under the pressure or it's being removed. Smart money is discounting the future to the downside and aggressively.
So look at the trades you are in. Do they make sense to you? Would you enter them Monday morning if you weren't already in them? If not, maybe it's time to let them go. Tops are tricky, they are volatile and a lot of money can be lost trying to catch that top. This is why I have been telling you all week, use the up days to build a position, but in small pieces until we see that downside confirmation. We need the SPY to close below the 118.20 level, hopefully on massive volume and we'll see a move down that will be fast and furious packed with panic sellers as the move of April 23rd set up a bull trap. There will be a lot of investors/traders, nearly 4 trading weeks worth, that will be at a loss the minute the SPY crosses 118.20 and they will panic and the market will snowball down from there.
There are shorts everywhere. Sunday night I'll have some good ideas up for you, but there are already tons of great ideas on the list. Take the weekend to look at them. Email me with your questions. Remember, any time you are in the market, you are at risk in any stock, so make the most of it or don't be in it. Be patient, make sure you are practicing safe money management and above all, BE PATIENT, we are almost there.
Have a great weekend!
5 years ago
