Updates for Friday 12/11/20
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Below is a time-delayed excerpt from our live updates for members.
Updates 12:33 PM EST - Friday 12/11/20
How deep is the dip?
As we posted at 2:22 AM, there is not enough fear and panic for the current spike in volatility to qualify as a VMajor signal. A VMajor signal is what we saw between 8/26 and 9/4, and between 10/23 and 10/30.
But there is definitely fretting and worrying and hand wringing and profit taking. So there is enough to cause a pullback in price. The key question now is "how deep is the dip?"
The green support zones from the S/R table (posted at 2:22 AM) are key support levels. $SPX $NDX IWM are very likely to find enough buyers to resume the rise from their green support zones.
But $SPX $NDX IWM may not dip that low. Don't forget that FOMC meeting starts on Tuesday next week. And market typically does not have a huge sell-off prior to FOMC meeting. Maybe after, but not before.
Still this kind of sell-off can cause discomfort for the bulls. This is why we urged you to think about position management on Monday. If you book partial profit, you will have the fortitude to hold through a draw down.
In a strong up trend like what we are in right now, it's very difficult to precisely time the dips. Lots of bears get burned by that. But the dips can cause enough discomfort to make the bulls get out too early. So position management is the key, and position management is a highly individual thing as it depends on how you trade.
We've been sharing with you our position management strategy in Signal Trades. We hope that has been helpful.
Get our highly accurate VIX-based trading signals for SPY QQQ TQQQ TNA here.
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