How many of you have that sinking feeling in the pit of your stomach watching the markets decline right now? Show your hands please.. because tomorrow is a big day… a REALLY big day.
December 19th… less than a week til Christmas, but I suspect most of us who like to dabble in the Stock Market, we’ll likely remember December 20th as being the most important day of the next 7 days.
To those caught in BUY positions that you’re refusing to sell, and those of you anxiously waiting to see what the market does next, Mr Powell really does have the Ring of Power, and he may just send everyone to Mordor for the holidays, such is the influence the FED has right now.
Most of you will have seen this chart inching down over the last few weeks, as we slowly approached exactly where I want it to be… we’re there now… we’re within touching distance (in my opinion) of a market meltdown and for those that don’t understand the impact another Interest Rate hike will have on an already demoralized market… it’s (likely) going to be very bad.. very VERY bad.
We’ve been flirting with key support levels for the last 2 days in the S&P500, and all it will take to trigger a mass market sell off, is Mr Powell uttering the words… We’re going to raise interest rates for the 4th time this year.
Now, I know what you’re probably thinking… does this guy have anything positive to say about the Stock Market… and the answer is yes, yes I do… but only when the market’s going up,
When the market’s going down, that’s a different story, and I’ll continue to listen to what price is telling me, to say it’s precarious would be an understatement.
Right now, it’s an action movie starring Sylvester Stallone, price is sitting at the front of the bus, dangling on the edge of a cliff, desperately hoping something will provide some counter balance before it plummets to the ground … Mr Powell is the hope for everyone right now, is he going to step forward and save the day like some kind of Avenger? Or is he going to be a little Loki and sabotage everything….
That’s the question really, what IS he going to do?
To the other side of it, I’d also be rather surprised if Donald isn’t having a melt down in the back ground, making threats and brokering deals to sweeten things (I’ve got good experience of watching House of Cards so I know how it all works)…
If I’m being truly honest, despite my negative market view, I’d be largely surprised if Mr Powell sends the Markets to the grave… I think even he has the common sense to delay things right now… but what if…. WHAT IF… he despises Donald… and decides to defy him… WHAT IF?… that’s the big question right now.
The key is to be positioned correctly … those in cash, sitting on the sidelines like a sniper are the best placed to profit right now.
Those of you reading this, and are perhaps unclear or unsure how to trade a declining market, or those that are caught out and have no real understanding of Technical Analysis and are caught out with that horrible sinking feeling in the pit of your stomach watching price move against your position… you don’t have to sit in silence and suffer… do something about it.
Rome isn’t built in a day, but if you’re currently finding yourself scraping by, just reply to this email and let me know your story, I’ll see if I can help because the definition of insanity is to keep doing the same thing over and over expecting a different result… if you want to improve… it takes guidance. Click the Link Below