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Selloff

Market Firesale! - Buy the dip?The broad indices (S&P 500, Dow Jones Industrial Average, and the Nasdaq) sold off today led be profit taking in the tech sector... at least that's the story. However, regardless of the reason, the facts remain that prices are considerably lower than where they were yesterday! You can take a look at the individual stocks that comprise any one of these indices and find that the majority of them are down. The only question that remains is will there be a continued selloff carrying into tomorrow? or is this our long awaited correction? If this is our correction, do we buy the dip? If anyone attempts to answer this question telling you that they know what will happen tomorrow, they're lying. All of my indicators could by flashing BUY BUY BUY and tomorrow could still up being another down day. That said, take a look at the chart of SPY above. It has been a while since we have neared the 21 day EMA. It has yet to reach it but it came very close today. These EMAs are not self fulfilling by themselves... only if enough people take action on them. So more than likely we could see a continued sell off to the 21 EMA tomorrow. I think the 21 EMA is where the SPY is heading. We have had 5 months straight months of gains... Options at this point are overpriced since the VIX is spiking as a result of the selloff. So bulls should think about selling put credit spreads rather than buying calls out right. If we pull back to the 21 day EMA... I think the markets will take their sweet time moving back up. Common option strategies for sideways moving markets include selling iron condors, iron butterflies, and straddles... These strategies might not be a bad idea since Theta decay is on your side. If volatility is more your thing, then consider buying straddles, strangles, or long iron condors... but be prepared to pay a hefty price! Rather than trading options, I think buying the dip could be considered for long term stock trading plans...mainly because stocks don't have an expiration date like options do. Take advantage of this temporary dip and take a look at your favorite stocks. Ask yourself if you are happy with the current prices. Imagine you buy the stock today and then tomorrow or even in the next few weeks, the stock drops more. Can you handle seeing that? If you are not sure what you should do, try reaching out to a trade coach for some assistance. Trading involves risks... so should you buy the dip? Only you can answer that question.
AMEX:SPY
by UnknownUnicorn6775423
Dax daily: 31 Jul 2020Congratulations to all traders who went short with us yesterday. Another success to add to our analysis records. Just as we expected, Dax slipped away from the consolidation range and took a prudent southern direction right after the open. The momentum was rapid and the price pierced through two support levels. If you were aiming our target at 12 592, we congratulate you for a lovely 200 points of profit. Important zones Resistance: 12 494, 12 592 Support: 12 278, 12 151 Statistics for today Detailed statistics in the Statistical Application Macroeconomic releases NIL Today's session hypothesis Dax shifted to the new territory after yesterday's sell-off and bounced off the support at 12 278. The disappointing print of German GDP was the movement catalyst and chances are the bearish momentum will prevail. The price is currently in between two S/R zones and might possibly stay there as Friday's session are usually slower. We anticipate the overnight gap to get closed.
EUREX:FDAX1!
by FTMO
FED and Shoulders - Massive Bear Setup in Stock Indices Amid depression-level unemployment, the stock market is nearing all-time highs. But how and why? THE FED! The Federal Reserve is funneling money into corporations via buying corporate bonds. Corporations then take this money and buy their own stock, hopefully netting out those who can see the writing on the wall. The average age of a Baby Boomer is 66 - retirement time! How do we retire a generation when the stock market is at 2000-2008 levels or lower? The FED indirectly provides the liquidity with printed dollars. Boomers will not think about putting Trump back in this November if they go into retirement without cash. For corporations to also benefit from all this free money, do they just buy their stocks and hold? Is it not the rational choice to convert their new stock inventory to cash for themselves as a matter of survival? Will the FED be there to keep buying? Do we in fact live in a world without consequences? As a false bull wave hypnotizes the masses, those with cash to buy stocks 'since the market is going up' will provide this liquidity to corporations. Market participants will lose faith in a market where price discovery becomes compromised. Market cycles and pandemics cannot be printed away. When numbers come out at the end of this and subsequent quarters, when real prices rise, when stimulus checks don't make it to consumers, the bottom will inevitably fall out. It will inevitably and indirectly be the FED who bears the losses in the stock market, as opposed to the boomers. Or that's the idea anyway. Significant buying opportunities ahead, as soon as the FED stops fiddling. That, or we see an end of public markets in the United States. When the government enables corporations to buy their own stock, risk free, with magic money, what are the big-picture implications of that?
OANDA:SPX500USDShort
by scottybfx
1
SHOP - Shopify Sell BubbleHello traders, Description of the analysis: Shopify selling bubble speculation. About me: Hi, my name is Jacob Kovarik and I´m trading on stock exchange since 2008. I started with a capital of 3000 USD. My first strategy was based on OTM options. (American stock index and their ETF ). I´ve learnt on my path that professional trading is based on two main fundaments which have to complement each other, to make a bussiness attitude profitable. I´ve tried a lot of techniques and many manners how to analyze the market. From basic technical analysis to fundamental analysis of single title. My analytics gradually changed into professional attitude. I work with logical advantages of stock exchange (return of value back to average, volume , expected volatility , advantage of high stop-loss, the breakdown of time in options, statistics and cosistent thorough control of risk). At the moment, my main target is ITM on SPM index. Biggest part of my current bussiness activity comes from e mini futures (NQ, ES). I´m trader of positions. I´m from Czech republic and I take care of a private fund (4 000 000 USD). During my career I´ve earned a lot of valuable experience, such as functionality of strategies and what is more important, control of emotions. Professional trading is, in my opinion, certain kind of mental training and if we are able to control our emotions, accomplishment will show up. I will share with you my analysis and trades on my profile. I wish to all of you successul trades. Jacob
NYSE:SHOPShort
by Jacob_Kovarik
USD/CAD - BEARISH Potential MoveHello Everyone ! Below we have USD/CAD pair on a SHORT Possibility, Price has been breaking and retesting the wedge by failing to create a Higher High. We are seeing some Bearish Pressure on this Pair, We seek to get into this Trade once the Market is Open. We Will be Monitoring Price Action on the Market Open for more Updates. Extra Note : Price is at the 78.6% Fib. Retracement successfully rejecting it couple of time ( 4H TimeFrame ) Feel Free to share your Opinions on the Comments Below. Instagram : Cosmic_forex Trading foreign exchange on margin carries a HIGH LEVEL OF RISK, and may not be suitable for all investors. Before deciding to trade foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose!
Short
by CosmicFX
SH, cleared for take off, runway Covid2020, no delayEquities are about to burst, I am very bullish SH. USA leadership has spectacularly fumbled the ball in responding to covid. Hot spots are developing as Trump is hellbent on reopening the economy. This will set the USA up for a massive 2nd wave this fall, unfortunately. This will ensure business remains crippled, if not completely shuttered till spring 2021. Trump doesn't realize that 'the economy' isn't an abstract thing--it's comprised of individuals whose health under-girds all else. The general health, safety, and well being of the country is our chief capital stock. Queue Abraham Maslow: Meet basic health and safety needs 1st. Insane R:R available Targeting $75-100 to begin
AMEX:SHLong
by scottybfx
1
Where will the FTSE Index bottom, or has it already....We have just experienced the largest market sell-off in history, just few weeks ago it was difficult to see where price would find some support - especially when market circuit breakers where triggering left, right and centre. As we're in the midst of the largest global health/economic crisis for at least the past 100 years, its clear the aftermath ripples of COVID-19 will influence some aspect of our daily lives for a long time...At this point it looks like we are headed for The Great Depression 2.0. However, recently market sell-offs appear to have slowed down, as it looks like price has possibly found a little support. But in a general downtrend, its completely normal for market movement to slow down multiple times, even have a some small rallies to the upside before continuing to lower levels. The FTSE 100 seems to have found support at c.4,900 level, however if it doesn't hold above this level, then it's highly likely that we are headed towards the c.3,500 area - bringing us back to the bottom of the last financial crisis. If the market does play out in this way, then there will be some epic shorting opportunities ahead. In the meantime stay safe readers, and I would like to leave you with the below thoughts from our good friend, which summarises the good old days (pre COVID-19) perfectly..... "We're the middle children of history, man. No purpose or place. We have no Great War. No Great Depression. Our Great War's a spiritual war... our Great Depression is our lives. We've all been raised on television to believe that one day we'd all be millionaires, and movie gods, and rock stars. But we won't. And we're slowly learning that fact. And we're very, very pissed off" - Tyler Durden
TVC:UKXShort
by PavanUK
CAC 40 At Crucial Support CAC40 opened With massive Gapdown trapping all the bulls at higher level This must have forced the small leveraged Trader to exit Their Position at the lower rates forcing the index downwards. Index can Face Heavy Selling Pressure from tops All the trapped brave Traders who didn't exit their position in today's fall will be waiting for their prices on the higher side. So Sell on rise pattern could be seen in this index CAC40 Is currently trading Below its 100 EMA at crucial Support Level of previous swing low. Fresh Sell Off Can be Seen Below The swing low till 5720 Levels which is 200 EMA and 4th Decembers Low.
TVC:CAC40
by TradingOx
1
Stock Market Analysis - 2/27/2020This is what real panic selling looks like. SPY just blew through all important Anchored VWAP and moving averages. SPY is clearly in a downtrend and I would not be a buyer anytime soon until the trend termination is confirmed. "A trend is innocent until proven guilty". Don't try to fight this trend or you will get burned. Of course we are getting to extremely oversold conditions and this selloff has expended too much energy to sustain this current trend. My plan is to not take any new positions and manage my current shorts by moving stop losses down as the trade works. Putting on new shorts or taking longs hoping to catch some meat off the bounce seems silly to me in terms of Risk vs Reward. Next important level to watch is 295. SPY is currently stuck in a HVN therefore a real flush in the morning would need to occur past 295 for continued, sustained selling. Otherwise if we gap up or stay flat, expect some consolidation within this HVN between 301-295.
AMEX:SPYShort
by Trader_Kaji
This selloff is going to lastAccording to the Cashflow and CICO reports (both available free on Tradingview), today's selloff vector was larger and more dramatic than August. The daily candle is a clear sell. Several month long lower support was also broken (Oct. 2019). It appears like Scrouge McDuck and his buddies were selling at a large profit to swim in their pools of money before things get really bad. I wouldn't touch stocks until we see some incredible upward momentum. Don't rely on fake news stories, use logic.
AMEX:SPYShort
by Johnny_Nickles
The glass broke 2 days agoAccording to the CICO report and Cashflow indicator, the selloff began two days ago. Hello friends, its been a minute. I try not to overwhelm you with daily noise. My intent is to give only important information. Trust me, if you heard from me everyday you would be annoyed. According to the CICO 13 MA on the daily chart, we had our first red day in about a month. What this means is the running sum of new money is leaving the SPY. More people are selling than buying; they want their cash. When a sell off begins the only certainty is nobody knows when it will end. I am a self proclaimed bear. What this means is I naturally prepare for results to be the worst case scenario and then I peel back layers of the emotional onion. Meaning, I think of the worst possible scenario and then question the reasoning. My goal is to uncover as much information as possible and then make a decision. I try to look at the good and the bad in totality. Being thorough in a decision is very important to me. However, the unique thing about the stock market is it has no feelings. Computer programs literally ignore emotion. Machine learning and AI are currently trading against you and they don't care about the impeachment or a trade war. I want our politicians to work together and solve problems. I think our present circumstances present a unique opportunity for unity. I'd suggest that border security is both digital and physical. Democrats want digital security from the Kremlin. Republicans want physical security on all borders. I suggest a comprise that all Americans want, complete security. Please focus on making life better for all Americans, not just half of us. I'd love to hear your feedback on the indicators listed. Leave them a like if they help you in anyway. I hope you take your money back today.
AMEX:SPYShort
by Johnny_Nickles
4