So what is UP with this market? Seems like it’s been going haywire these last few weeks. My trades have been emploding left and right and that’s never a good sign.
William O’Neil said that if your system is tight and profitable and it starts hitting a big losing streak it could mean weakness in the market.
So where are we at and where might we be going? Let’s look at the charts:
Here’s the hourly chart. Nothing but back and forth sideways madness. This is the WORST kind of market for a breakout trader like me. The worst. But what can you do? The market is always right, people.
More back and forth on the daily, even. Going back months. And we just can’t break that $189.00 price to the upside.
So what’s coming up? I don’t know. But I do know this — the market makes LOSERS out of most traders. It has to be that way — it can be no other way. So which way is the loser trading? That’s something to think about.
Look at this beast — the weekly, long term trend is still up. It’s just an amazing site, isn’t it? Something to behold. Keep your eyes on this one, it’s something else.
And finally, we come to a chart of the Russell 2000 and the main reason why my trades have been sucking for the last few weeks.
Russell 2000 – Small Cap index:
Ha! What an ugly market that is — ever since March highs. For some reason I never thought to check. Don’t hold it against me! Everyone makes mistakes. But that is one ugly, ugly chart — and so small cap trading is on hold for awhile on everything but the smallest time frames.
Well, that’s the update for the week. It’s getting pretty gnarly out there. So hang on, trade your plan, and be sure to keep your eyes on the market charts for the major trend direction before committing capital.