Happy Sunday everyone! I hope you all had a killer week trading last week and that you’re ready for a new one. I caught absolutely ZERO good moves and missed a couple other great ones.
That’s the way it has been going with me lately. I always run hot and cold and the losing streaks are always replaced by winning streaks.
Anyway — let’s move right into the charts —
As you can see — it was kind of a choppy week in the markets. We had that failed breakout attempt on the 15th and a BUNCH of gaps up and down all week long.
This type of activity screams of indecisiveness and good to be cautious.
We ended the week below the the short term moving average which means I’ll be cautious when looking for intra-day trades and be sure to trade in the direction of the trend.
Well hello there daily chart! Look at that trend out of the late January break to new highs. It’s funny to me just how many people want to fight a trend like this and deny that it’s happening.
Sure, you can make money trading counter trend and fading breakouts like this — but when you are wrong, you better admit it and not fight something like this all the way up.
Still, there are people in chat rooms and message boards asking how long this trend can continue. And the only answer is — as long as it wants to.
The trend will end when and where it ends and until then — pay attention to what is happening now — not what you want to have happen.
Right now — as I listed on the chart — I’m looking at that last GAP UP — is it a blow off top, or is the daily back in consolidation mode.
You can see by looking that we slid back and filled the gap — then made a run for new highs which was greeted with more selling. So it will be interesting to see if the bulls or bears win this battle.
Now here is a chart worth looking at!
I hear a lot of people saying that we have gone straight up for years off the 2009 bottom — and that is simply not true. Looking at this chart you can see the massive 2015/2016 consolidation. Since then price has moved out of the range and is making new weekly highs.
The only time that changes is when it actually changes. So you have two choices — either agree with the chart and trade long — or look for counter trend entries.
As I trade with the trend, I know what I will be doing.
Until next time…
- Short Term – Sideways
- Mid-Term – Up
- Long Term – UP