Downtrends are far more volatile than uptrends. We saw that today as the early extreme weakness quickly triggered a rally. But does that rally change the downtrend in any meaningful way? Not likely. The macroeconomic trends as well as the price trends indicate the path of least resistance is to the downside.
This is our weekly look at the macroeconomic trends that are shaping our watchlists, setups, and trades. The first rate hike is coming in March and the indices are heading lower, dragging the tech sectors with them. Inflation trends are still intact. It’s important to focus on BOTH the uptrends and downtrends in this environment.
In this video, we look at the selling pressure that is increasing as we go lower and lower. We want to short this market, but have been getting wild intraday short covering rallies, so we must be careful. How do we play this market and not get crushed?
The future’s market posed quite the challenge today even for the most nimble of day traders. We started with false cash open breakouts, and then got hit with geopolitical headlines out of Asia threatening equity stability here in the States, and commodity unrest worldwide. The key today was picking your spots and limiting your exposure. Check it out.
In this video, we look at the selling pressure that is increasing as we go lower and lower. This is fantastic if you are short, but with the wild intraday short covering rallies, you have to be more nimble than ever to avoid getting crushed. How do we play this market and do we go short or long? I tell you what I am doing and hope it helps.
True, the stocks sold off today, but not everything was being sold. Let’s look at where some other opportunities may exist.
It’s frustrating when a trade doesn’t work, and a relief when you realize why.
These are the key things I’m watching this week.