Looking at the week ahead.

Last week we have identified potential bear flag which has been playing out so far. See blog August 28. Four day weeks are usually very challenging and I don't expect this one to be different. Be short or be in cash is the game now. Not much to say but the line of least resistance is downward. Exercise self discipline, this means that you will do your market studies every day, thoroughly and religiously, and that you will follow the rules of successful trading. Remember, markets are never too high or too low and be aware of your emotions of fear and greed. Indecision of the market participants and volatility is expected to continue.
All the best in the week ahead !

interesting

Nasdaq 100 tested 50 day moving average.

Isolating strong stocks when the market is weakest is a very simple idea that works. When most everything in the market is getting trashed, look for the stocks that refuse to go down. There has to be a reason for it. When the market resolves itself back to the upside, these are the names that will potentially become the strongest stocks very quickly.

First, overall breath has improved enough and there are some buy set ups showing up.
I see 50 day test across the board.
Second, remember, any significant selling here would change the picture quickly.
Third, go day by day and stay flexible and focused on your plan and execution.

Looking at the week ahead.

Stay alert and patient here as the market is chewing and spiting lots of traders now. For the week ahead just stay patient and focused on risk control if you are going to get engaged. Studies suggesting higher than normal volatility to continue.

Trading range.

I am impressed with the market this week as yesterday morning it squeezed out the shorts at the open and this morning is scared out the nervous longs. Those who are trading are chasing which adds scale to these swings.