Is the Market Bottom In?
Is the Market Bottom In?
1 Week ago, I sent a newsletter out with the 3 very clear charts, that supported the thesis of a Market drop, and ultimately this was proven correct (thanks to those of you that taken the time to send thank you emails).
Those of you that have also watched (quite possibly) 2 of the most profitable FREE Weekend Trade Ideas Webinars in the history of the world, you've had an incredible couple of weeks trading to the down side... this is why Trend Trading is the approach I have and why I teach it... because quite simply, it teaches how to profit in any market condition... and It's unbelievable to see the numbers my clients are posting (I'm really not exaggerating).
Anyway, rather than leave you all hanging in the wind, you’re probably wondering what to expect so I thought I better send out 3 more charts for you to be aware of.
It must be said, that we are currently in the midst of Earnings Season and Tech is set for blast off this evening…. and it can literally fly off in either direction, which will likely dictate the direction of the overall market.
The following charts should be considered in conjunction with the information the market gives us over the next 48hrs and the question we should ask is this.... Is the Market Bottom now in?
Enter Exhibit A - The Dow
The DOW broken down last week, but for those of you that don't understand Technical Analysis, there are a couple of Bullish signals here within the chart, that may or may not hold true.... bottom line... be on alert.
Enter Exhibit B - Tech
Tech is also showing the same characteristics... so we should watch VERY closely what happens next
Enter Exhibit C - S&P500
The S&P500 is also showing the same characteristics.
How to put it all together
In the same way that I use Price to pinpoint a market decline, we must constantly re-assess what is going on and be alert to the opportunity that is presented to us by an ever changing and ever evolving market.
It’s amazing how quickly we must adapt our interpretation of the markets, only 2 weeks before, I was happy at new All Time Highs… I was having discussions with clients about looking to move myself up to Full Risk on the back of the All Time Highs, and then… just like that… the market flipped and I've allocated a large amount of risk to the downside, and now I'm alert to the possibility of moving in on discounts.
Those that are new to the markets… it’s an unforgiving place, but you need to learn how to profit in both directions. It’s crucial… you can’t just take buy positions and hope for the best, and by educating yourself on how to profit in all market conditions, you stand a better chance of success.
Those that are happy sitting on cash just now - this is also a valid position to take... many of my guys are sitting on cash as they're not comfortable short selling (which is completely ok).. but you should understand the nature of the current market, it can flip in an instant.
If this Market Update interests you, and you would like to talk to me about education… feel free to arrange a call by clicking the link below. We’d love to talk to you, but unfortunately i cannot engage in lengthy email exchanges. My time is too important to me, so a chat for 20/30 mins works best.
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