TOP OF THE MARKET; DOWNWARD TREND
Throughout the past year as the market swung up and down due to various news that supposedly influenced the decisions of traders, one thing that proved consistent was technical analysis. I use this method as my sole method of trading decisions because if you truly believe that machines and HFT is now prominent in the trading, then you have to believe that they operate with some sort of logic regardless of what is happening in the world.
Because of this, the market variations of the past year have actually been predictable as support and resistance lines are hit. As the year came to an end and the Fed's decision to raise rates became the forefront of discussion until it was actualized, a downward trend in the markets formed. Regardless of the reasons, this fact remains.
As a result, I am short the S&P 500 and any other benchmark going into the year 2016.
Because of this, the market variations of the past year have actually been predictable as support and resistance lines are hit. As the year came to an end and the Fed's decision to raise rates became the forefront of discussion until it was actualized, a downward trend in the markets formed. Regardless of the reasons, this fact remains.
As a result, I am short the S&P 500 and any other benchmark going into the year 2016.
Note
Seems Support & Resistance levels are a better indicator than the trendline I drew.Bottom line, still short for 2016
Note
Just an update. I wanted to be short 2016 and was.Till the market turned around February. Then I wanted to be short again June but that turned around too.
Bottom line, no one knows the future. Trade what you see.
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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.