Correction: * New leg lower
Market seems to be accelerating to the downsides. I was ignoring the warning signs and entered a few poor quality setups so I lost probably around 2% from last week.
I've had enough so I created a new rule where I can only enter picture perfect 5* setups in bad market environments like we are in now.
Despite all this, I'm flat for the month and sitting on 100% cash, which is quite refreshing to see given the indexes lost quite a lot and we're probably heading lower.
I need to remember that sitting on cash is an edge.
We've been in a bad environment for over 120 days which is the longest consecutive one since 2015. I expect another leg lower but I think once we find bottom, we can see a really strong rally. Maybe that rally will only last 1-2 weeks and then the market rolls over and we continue the correction, but the momentum leaders with 99 RS ratings in that rally will likely go up 100%+ in short amount of time. And I will be prepared.
For now, sitting and waiting.
Market seems to be accelerating to the downsides. I was ignoring the warning signs and entered a few poor quality setups so I lost probably around 2% from last week.
I've had enough so I created a new rule where I can only enter picture perfect 5* setups in bad market environments like we are in now.
Despite all this, I'm flat for the month and sitting on 100% cash, which is quite refreshing to see given the indexes lost quite a lot and we're probably heading lower.
I need to remember that sitting on cash is an edge.
We've been in a bad environment for over 120 days which is the longest consecutive one since 2015. I expect another leg lower but I think once we find bottom, we can see a really strong rally. Maybe that rally will only last 1-2 weeks and then the market rolls over and we continue the correction, but the momentum leaders with 99 RS ratings in that rally will likely go up 100%+ in short amount of time. And I will be prepared.
For now, sitting and waiting.
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.