Inflation ticking back up. Unemployment increasing. Dollar increasing. Geopolitical turmoil. Contentious elections. And yet the market continues to grind up. But when will the music stop? When is the party over?
I'm not making a call to mark the top here but this is setting up for a giant fall. We could continue to grind up to 6000 point, there's no doubt that bulls remain in control. However, the strength of the move up is weak. History doesn't repeat but it often rhymes. Looking back at the historical data, bearish divergences on the Weekly always result in a large pullback.
I am expecting a pull back soon. I do believe a large correction is brewing and I don't want to be caught on the wrong side of the trade.
What am I doing about it? I still think the path of least resistance is to the upside, bulls remain control. So I am using trailing stop losses, taking profits on many of my positions. And looking to open shorts upon weakness. Waiting for confirmation of my bias, especially with a very important couple of weeks of earnings.
Stay tuned, manage your risk and don't let greed get the better of you!
Not financial advice.
I'm not making a call to mark the top here but this is setting up for a giant fall. We could continue to grind up to 6000 point, there's no doubt that bulls remain in control. However, the strength of the move up is weak. History doesn't repeat but it often rhymes. Looking back at the historical data, bearish divergences on the Weekly always result in a large pullback.
I am expecting a pull back soon. I do believe a large correction is brewing and I don't want to be caught on the wrong side of the trade.
What am I doing about it? I still think the path of least resistance is to the upside, bulls remain control. So I am using trailing stop losses, taking profits on many of my positions. And looking to open shorts upon weakness. Waiting for confirmation of my bias, especially with a very important couple of weeks of earnings.
Stay tuned, manage your risk and don't let greed get the better of you!
Not financial advice.
Trade active
Bearish divergence was the precursor to this large drop. Don't say I didn't warn you! Something big was going to break this market and it was indeed the trade war. The bullish analysts were all wrong when we shot above their targets last year. This year they raised their targets but we are facing the biggest drop since Covid. This is why I don't follow the clowns on CNBC. I focus on my own plan. I'm not a perma bear, in fact I was also in some long positions, so I know how it feels to be under water. However, 80% of my portfolio was long GOLD (which I sold 75% at $3100) so I am beating the market, like I normally do.
I am now 60% in cash, having deployed 20% cash on Friday close. I intend to continue buying the capitulation, but in a controlled and disciplined manner.
Stay safe out there folks.
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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.
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.