trading
Friday 12 February 2021
In summary, all four major indices made new all-time intraday and closing highs this week. SP-500 should have support at the previous all-time highs near 3870. Below that, there is support at 3700, the January lows and the bottom of that brief selloff at the end of January, and then the important support level at 3630, the December lows.
Thursday 11 February 2021
What is a reversal top?
When an instrument makes a new 60+ day high, closes near the intraday low, then the next day, it closes lower than the prior day low on better than average volume, that is a reversal top. It typically brings a 10% correction when confirmed.
Note: RTY was going for it in the morning , trading below previous day low, but reversed mid. day, volume gave a hint.
Wednesday 10 February 2021
Saturday 6 February 2021
In summary, institutional cash, which is often deployed heavily at the end of January and the beginning of February, came rushing into the market. In just four trading days, SP-500 had recovered all of the losses and had closed at a new all- time high. SP-500 bottomed out almost right at 3700 on Friday, January 29th, so that is support. There is also support below that, at 3630. That is the one that is more important, because a violation of that level would take the market below its December lows typically the sign of an emerging bear market. For now, the line of least resistance is to the upside, so stay long and enjoy the ride.
Monday 1 February 2021
Sunday 31 January 2021
"Focus."
Where to focus:
For the beginner, execution.
For the intermediate, strategy.
For the expert, mindset.
Thursday 28 January 2021
Saturday 23 January 2021
In summary, SP-500 remains positive, so bullish positions should continue to be held -- rolling up and/or raising trailing stops.
There is a lot of negative "noise," but all one really needs to know is that the chart of SP-500 (and the others) remains strongly positive. The first support level is at 3725-3750. Below there, the next support area is 3630-3650.
"History repeats itself, that's one of the things that's wrong with history.”
Wednesday 20 January 2021
#2 - On a Journey.
Monday 18 January 2021
Years ago, the great Sir John Templeton said, “The secret of my success is that I buy when everyone is selling, and I sell when everyone is buying.”
Let’s consider the optimism that exists everywhere at the moment.
Today, optimism on the U.S. equity markets has rarely, if ever, been this bullish. Two words: “All in!”Tuesday 12 January 2021
#1 - Where am I going ?
Supreme Court Justice Joseph Blazevic had the reputation of being absent minded. One day on the bus out of Novaki to Karlovac, Joseph was studying a pending case when the conductor asked for his ticket. The jurist searched each pocket nervously, but to no avail.
"Don't be concerned, Mr. Justice Blazevic," the conductor said. "We know who you are. When you return to Novaki, you can send us a ticket at your convenience."
Joseph lowered his eyes and shook his head sadly. "Thank you, my good man, but you don't seem to understand the problem. It's not a question of weather I'll pay the fare. The problem is: Where am I going ?
Sunday 3 January 2021
" I want to thank me " and I wish you do the same for yourself. Healthy, happy and prosperous 2021 !
I want to thank me.
I want to thank me for believing in me.
I want to thank me for doing this all hard work.
I want to thank me for having no days-off.
I want to thank me for for never quit.
I want to thank me for always being a giver and trying to give more than I receive.
I want to thank me for trying to do more right than wrong.
I want to thank me for just being me at all times.
Thursday 31 December 2020
In summary, it looks like things are going to be very interesting in the new year. For now, it is necessary to remain bullish, but alert.
The market is strong, as evidenced by new all-time highs in all four major indices this past week. Since price action is the most important indicator, the overall trend remains bullish as long as SP-500 holds above support.
There is a short-term support at 3725. Below that, there are two important support areas, the first is at 3630-3650, and the second is at 3550.
So, what could possibly go wrong? Well, there are plenty of sell signals that could be setting up.
Monday 28 December 2020
"Trust your gut."
Don’t do what you know on a gut level to be the wrong thing to do. Don’t stay when you know you should go or go when you know you should stay. Don’t fight when you should hold steady or hold steady when you should fight. Don’t focus on the short-term fun instead of the long-term fall out. Don’t surrender all your joy for an idea you used to have about yourself that isn’t true anymore. Don’t seek joy at all costs.
I know it’s hard to know what to do when you have a conflicting set of emotions and desires, but it’s not as hard as we pretend it is. Saying it’s hard is ultimately a justification to do whatever seems like the easiest thing to do—have the affair, stay at that horrible job, end a friendship over a slight, keep loving someone who treats you terribly. I don’t think there’s a single dumbass thing I’ve done in my adult life that I didn’t know was a dumbass thing to do while I was doing it. Even when I justified it to myself—as I did every damn time—the truest part of me knew I was doing the wrong thing. Always.
As the years pass, I’m learning how to better trust my gut and not do the wrong thing, but every so often I get a harsh reminder that I’ve still got work to do.
Sunday 27 December 2020
Monday 21 December 2020
Sunday 20 December 2020
Sunday 13 December 2020
Wednesday 9 December 2020
Saturday 5 December 2020
In summary, the market is overbought and getting more so almost every day.
Over the past three days, SP-500 finally managed to break out to new all-time closing and intraday highs. Thus, the SP-500 chart is bullish, as there is no classical resistance -- by definition -- when it is at all-time highs.
Thursday 3 December 2020
The reason people don’t make big money in markets is because they chicken out too soon. The reason people blow up their accounts is because they don’t chicken out fast enough.
"The secret to winning is learning how to lose.
That is, learning to bounce back from failure and disappointment—undeterred—and continuing to steadily march toward your potential.
Your response to failure determines your capacity for success."