Markets are in correction mode as everyone has (hopefully) noticed by now, with the NASDAQ and S&P500 breaching key lows.
Forced selling like we saw on Friday usually gives us a reaction rally that can last a few days.
Prices have already dropped too much already so don't try an be bold now with any agressive shorting, especially if you plan to keep positions overnight!
You have to stay alert and react quickly to be able to profit on short-term setups within this bear market.
Be disciplined, protect your capital, stay active—this is not an investor's market !!!
Forced selling like we saw on Friday usually gives us a reaction rally that can last a few days.
Prices have already dropped too much already so don't try an be bold now with any agressive shorting, especially if you plan to keep positions overnight!
You have to stay alert and react quickly to be able to profit on short-term setups within this bear market.
Be disciplined, protect your capital, stay active—this is not an investor's market !!!
Note
A reaction rally is one of the multiple possible outcomes.I'm not saying just buy now !
You have to look at smaller time frames to find any low risk setups.
Ideally, the first and best setups where during the open of the extended trading hours yesterday evening.
Trade active
First move looks good for now. If price doesn't retrace all of it, we should see more upside momentum.
Trade closed: target reached
Great opening in the red today. Looks like the bloodbath might finally pickup again !Longs are of course not recommended seen what we got today.
Personally I'm scalping in the short side a bit some of the most traded names, mainly NVDA and the other big tech names.
Precious metals and miners continue to outperform the rest of the markets (not really difficult to do so one might say).
Although they've been good, remember what I said previously, nothing can withstand a big sell off.
Seen that everyone on the news called the bottom those last few days and even suggested buying tech names, I'm convinced we're going to see new lows.
So, this wonder rally I talked about is now over imho unless we see price start to just go sideways the rest of the week.
Be careful and be quick to take profits may it be on the long side or my prefered short side !
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Questions? Chat or Comment on Ideas
Don't forget my public Telegram channel -
t.me/em16public
Thanks !
Questions? Chat or Comment on Ideas
Don't forget my public Telegram channel -
t.me/em16public
Thanks !
Related publications
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.
Don't forget to like, share and follow !
Questions? Chat or Comment on Ideas
Don't forget my public Telegram channel -
t.me/em16public
Thanks !
Questions? Chat or Comment on Ideas
Don't forget my public Telegram channel -
t.me/em16public
Thanks !
Related publications
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.