No, no, no...I'm not saying it's a fact that the market is doomed and will bounce down at this resistance line I have drawn above. I am saying it's probable though. In trading we must trade on probabilities right? Well, what indicates that the market is going to just ignore the recent lower lows and downward resistance line? Nothing. These lower lows are what they are until they change. What makes the change? Well, a start would be a break of resistance and then an eventual higher high.
I know the feeling...the market has been bullish for so long that we must pull out of this rut. I believe this too. However, to me the question is when? I can't afford to go into too many bullish trades until the market gives me a clearer picture. We should know soon.
What are your thoughts?
2 comments:
I think the market will drop over the next few days. Shorting and buying puts right now would be the most optimal time to do it and ride the downtrend over the next few days IMO.
I plan to do so if and when we confirm the bounce back down. Still a little room to go up before the pullback but who knows?
Thanks for your interest.
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