Market Looking Questionable! Stay Cautious!!
Updated
Hey guys! Been a while since I've posted an update, figured I'd try to crank one out!
Market is looking awfully sketchy right now. Second time this year we decided to touch the 200 day MA, and that is far from a good sign. All signs point bearish right now, however there is a little light at the end of the tunnel. RSI is wayy oversold right now on the daily time frame, hitting a multiple bottom, and everyone knows we're extended to the downside. In order to continue this downtrend, we need to recover slightly, likely on Monday. I made a little drawing as to what I would like to see the market do on Monday, and this would be fantastic for bears as it allows the bears to make money on the downside, and fantastic for the bulls as it allows them to take a cash position at a higher point.
Now the market can do whatever, no one knows for sure what the market is going to do ahead of time, the goal is to anticipate all situations, so what I did was take cash from my shorting position at the 200 MA. Fantastically profitable week, and if I am to remain bearish, I need to see confirmation that the price falls below the 200 MA. Because of this, I've taken cash, waiting to hop onto whatever opportunity presents itself, even if that turns out to be bullish.
If we can see this recover slightly Monday, maybe Tuesday, then continue downward with high selling volume, things are looking fantastic for the bearish case. If we open below the 200 MA, I'm slightly worried that this breakout to the downside won't have the necessary strength to continue downward after the large move to the downside we've had over the past week or two. Either way, be on the lookout for money making opportunities!
As you can see on the 30 Minute chart, all signs point bearish. Insanely high sell volume, declining 5-Day MA. There is no reason for anyone right now to take a long position, even on Monday or Tuesday for a quick scalp. Just try to find an opportunity where the market slightly recovers and a short position can be entered at a better price (Hopefully after a retracement near the Yearly VWAP).
All I'm saying is, DO NOT GO LONG! AT ALL! GUILTY UNTIL PROVEN INNOCENT!
You worked hard for this money, don't let greed and market deception take it away from you! Wait for confirmation, then make the profitable trade once it's setup. That is all I gotta say.
Any questions, leave them in the comments below. Probably could of said a lot more, I just am tired.
Market is looking awfully sketchy right now. Second time this year we decided to touch the 200 day MA, and that is far from a good sign. All signs point bearish right now, however there is a little light at the end of the tunnel. RSI is wayy oversold right now on the daily time frame, hitting a multiple bottom, and everyone knows we're extended to the downside. In order to continue this downtrend, we need to recover slightly, likely on Monday. I made a little drawing as to what I would like to see the market do on Monday, and this would be fantastic for bears as it allows the bears to make money on the downside, and fantastic for the bulls as it allows them to take a cash position at a higher point.
Now the market can do whatever, no one knows for sure what the market is going to do ahead of time, the goal is to anticipate all situations, so what I did was take cash from my shorting position at the 200 MA. Fantastically profitable week, and if I am to remain bearish, I need to see confirmation that the price falls below the 200 MA. Because of this, I've taken cash, waiting to hop onto whatever opportunity presents itself, even if that turns out to be bullish.
If we can see this recover slightly Monday, maybe Tuesday, then continue downward with high selling volume, things are looking fantastic for the bearish case. If we open below the 200 MA, I'm slightly worried that this breakout to the downside won't have the necessary strength to continue downward after the large move to the downside we've had over the past week or two. Either way, be on the lookout for money making opportunities!
As you can see on the 30 Minute chart, all signs point bearish. Insanely high sell volume, declining 5-Day MA. There is no reason for anyone right now to take a long position, even on Monday or Tuesday for a quick scalp. Just try to find an opportunity where the market slightly recovers and a short position can be entered at a better price (Hopefully after a retracement near the Yearly VWAP).
All I'm saying is, DO NOT GO LONG! AT ALL! GUILTY UNTIL PROVEN INNOCENT!
You worked hard for this money, don't let greed and market deception take it away from you! Wait for confirmation, then make the profitable trade once it's setup. That is all I gotta say.
Any questions, leave them in the comments below. Probably could of said a lot more, I just am tired.
Note
Update time!Shit is falling in line perfectly:
I took a straddle at the 200 DMA, great move, moved it to a negative delta position where the 5 Day MA (circled) is and rode this puppy down for some beautiful gains. We're awfully close to the 200 MA again, make sure to get out of both longs and shorts (or at least hedge) going into this, we either needa bounce or drop through before readjusting our positions
Note
Market showing some strength! Closing above 5-Day MA for the first time in a couple weeks, signifying that we're taking a break right now from all this bearishness.
Probably gonna trade in the range depicted in the image I posted a little ago with a max height upcoming of around 272 or so
Note
*275 or so, my apologies
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