Market context
Support1 has been functioning like a magnet for $SPX $NDX SPY QQQ TQQQ. They have been attempting to rise from Support1 for two sessions in a row. However, each time, they have been getting further away from surpassing Resistance1. While prices are still appearing bullish, up high near Resistance1, under the hood market internals continue to confirm the short-term bearish message. The rest of this article covers: Table of support and resistance levels Projections from market internals Planning your trades Register your email here for full access to all our nightly analysis and trading plans. No credit card necessary. Trial membership is FREE for one month. Here are testimonials from our readers.
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Market context
In the trading plan posted last Thursday night 11/7/19, we wrote about this strategy for short-term traders to employ on Friday:
Indeed $SPX $NDX SPY QQQ TQQQ came close to Support1 on Friday, and did bounce up from there. But they did not succeed in rising above Resistance1. Intermediate-term traders hoping to enter long were rather disappointed that $SPX $NDX SPY QQQ TQQQ didn’t get down to Support2. And $VIX $VXN dropped rather than rose. The stock market is seemingly quite bullish right now. However, a careful look under the hood tells a different story, especially with the latest data from Friday for different market internal indicators. Let’s take a look. The rest of this article covers: Table of support and resistance levels Projections from market internals Planning your trades Register your email here for full access to all our nightly analysis and trading plans. No credit card necessary. Trial membership is FREE for one month. Here are testimonials from our readers. Market context
This morning we posted a pre-market update because stocks were gapping up at open, on a bit of exciting US China trade deal news. Some time in the near future, there may be a possible partial trade deal with some partial tariff rollback. Yay! Reading about this pas-de-deux between US and China is like reading about an on-again, off-again romance between two celebs. (Are they or aren’t they being having a relationship?) We also pointed out in our morning post some clues indicating that this exciting news was likely already baked into the price of stocks at this point. In other words, Big Money algos aren’t likely to kick into buying mode. The gap up at open may turn out to be a possible short-term top. If you did follow our long, intermediate or short-term strategies laid out yesterday, you wouldn’t have entered long at open this morning. Let’s see how we can position ourselves for tomorrow. The rest of this article covers: Table of support and resistance levels Projections from market internals Planning your trades Register your email here for full access to all our nightly analysis and trading plans. No credit card necessary. Trial membership is FREE for one month. Here are testimonials from our readers. How to know when Up Trend ends
One of our members asked if the current Up Trend is fundamentally sustainable. In other words, how do we know when this Up Trend will end? Stock markets are only loosely coupled with economic conditions. By the time we read about economic or finance or political news, you can bet that insiders and big money already know. You can also bet that the news are mostly already factored into stock prices. So us small investors and traders have zero edge when we try to apply the news to our investments or trades. The only way for us to survive in the market is to learn how to track Big Foot, or rather Big Money. Like Big Foot, Big Money leaves a trail of large imprints when they make some serious moves. And that is why we choose to monitor market internals. In our experience, market internal indicators are like the footprints of Big Money. They come closest to accurately tracking the major moves of Big Money, especially for long term and intermediate term time frames. As for tracking Up Trend, when you are investing in the long term time frame, your best bet is to assume that the market will go up. This is because the stock market is skewed in the bullish direction. Bear markets do come, and they are nasty, fast, and furious when they arrive. But they don’t last as long as bull markets. Sellers and short-sellers are in the minority. Most portfolios, big and small, are set up to buy. (You can’t sell short in your 401k, can you?) So you can assume an Up Trend will last, until all market internal indicators start to shout “mega bearish divergence” under the hood, and keep shouting this message for a while. When we detect that message, we will tell you to consider exiting the stock market and go to cash for the long term portfolios. Right now the Up Trend is still in play. So assume that stocks will go up in the long term until market internals tell us otherwise. Intermediate and short term trades are different beasts. We will elaborate more on that below. The rest of this article covers: Table of support and resistance levels Projections from market internals Planning your trades Register your email here for full access to all our nightly analysis and trading plans. No credit card necessary. Trial membership is FREE for one month. Here are testimonials from our readers. Market context
Here’s a trading exercise to sharpen your chart reading skills. If you look at the S/R table projected for today Monday, you will find that $SPX $NDX SPY QQQ TQQQ all pretty much gapped up this morning right into Resistance2 (from yesterday’s post) …. And they stayed there pretty much all day. Now go back and look at the TQQQ hourly chart for Surge7 we posted yesterday. Can you identify where the comparable (1), (2), (3), (4) and (5) are likely to be on the current TQQQ hourly chart? The answer is at the end of this blog post. The point of this exercise is to show you that this kind of pattern tends to repeat itself over and over again. We explained to you in yesterday’s lengthy post how to trade this kind of market, or more precisely, how to conquer your conflicting emotions in this kind of market. The rest of this article covers: Table of support and resistance levels Projections from market internals Planning your trades Register your email here for full access to all our nightly analysis and trading plans. No credit card necessary. Trial membership is FREE for one month. Here are testimonials from our readers. What to do when the market is taking off without you
Right now, many of us are probably feeling like we may have missed out on the arrival of Surge9 as the Up Trend resumes. The market is taking off without us. Below we want to show you TQQQ hourly chart from early June until late July this year. It shows the rise of Surge7. We want to show you this chart again because there are some really important trading lessons to learn from this that are applicable to the current market of November. ... The rest of this article covers: What to do when the market is taking off without you (more) Strategy for short-term trades Table of support and resistance levels Planning your trades Register your email here for full access to all our nightly analysis and trading plans. No credit card necessary. Trial membership is FREE for one month. Here are testimonials from our readers. |
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