Don't be fooled by these small pullbacks, bears still in control
Dont trade based on what anyone else thinks. Also, go read "trading in the zone" to keep you occupied during this very boring market movement we have had lately. Trust me, you dont want to chase after these small runs because more than likely you will get burned.
Now lets get into it,
We have seen a slight pullback after resting on the 6500 level for several days now and basically the smallest volume that we have seen in a long time. As you can see it broke through a minor bearish trend line (yellow) but failed to do much at all since it did so this current bullish move is more than likely just another bit of desperation by people in this market that has been quite boring for the last few weeks. In my opinion 7500 would be the highest this little pop could go, but the market is very desperate for some sort of decision. Small investors are eager to get in on any pop because they are impatient and/or bored. Probably best to stay clear until a clear move has been made coupled with a large increase in volume either way. My targets are still the same as before but I have added a smaller position at the 6500 level in case this becomes an Adam and Eve double bottom reversal. I am still very bearish until it is proven otherwise with CERTAINTY. Meaning a large volume spike through a large capitulation dump or a break in the real descending triangle trend line that rests around the 8k range area right now. A break of this line COULD be bullish, BUT the red trend line is the one that needs to be broken AND CONFIRMED on the retest to be considered a bullish move. This is unlikely given the current puny volume we have had for multiple days in a row.
I have also opened a small short just for fun with a stop at 7500 area and profit taking at the 6500 area and below. This is primarily out of boredom for me and because I enjoy trading. Wouldn't be sad if I lost 100% of the money I put in it. I do this to trick myself during these dead market days so I am not tempted to jump in out of boredom. Works for me, might not for you, I look at it as practice shorting with little risk at all.
Now if you look in the past during this bear market cycle there have been several Sundays that were "dump days" which started bigger bear moves down in price. This isn't something to trade against, but it is a noticeable pattern to keep in the back of your mind as we go into tomorrow's trading day. Its usually overnight (my time at least, which is Central standard). Regardless, We should be coming to a full decision by this market this coming week. So for now lets sit back and relax and wait for the highest probably trade that we can find. I have orders all the way down to 4.5k in case of a huge washout but I don't expect my bottom orders to actually take. If they do, that will be quite exciting since the next target areas are 9k and 11k. Until then lets let dumb money fight over scraps.
Now lets get into it,
We have seen a slight pullback after resting on the 6500 level for several days now and basically the smallest volume that we have seen in a long time. As you can see it broke through a minor bearish trend line (yellow) but failed to do much at all since it did so this current bullish move is more than likely just another bit of desperation by people in this market that has been quite boring for the last few weeks. In my opinion 7500 would be the highest this little pop could go, but the market is very desperate for some sort of decision. Small investors are eager to get in on any pop because they are impatient and/or bored. Probably best to stay clear until a clear move has been made coupled with a large increase in volume either way. My targets are still the same as before but I have added a smaller position at the 6500 level in case this becomes an Adam and Eve double bottom reversal. I am still very bearish until it is proven otherwise with CERTAINTY. Meaning a large volume spike through a large capitulation dump or a break in the real descending triangle trend line that rests around the 8k range area right now. A break of this line COULD be bullish, BUT the red trend line is the one that needs to be broken AND CONFIRMED on the retest to be considered a bullish move. This is unlikely given the current puny volume we have had for multiple days in a row.
I have also opened a small short just for fun with a stop at 7500 area and profit taking at the 6500 area and below. This is primarily out of boredom for me and because I enjoy trading. Wouldn't be sad if I lost 100% of the money I put in it. I do this to trick myself during these dead market days so I am not tempted to jump in out of boredom. Works for me, might not for you, I look at it as practice shorting with little risk at all.
Now if you look in the past during this bear market cycle there have been several Sundays that were "dump days" which started bigger bear moves down in price. This isn't something to trade against, but it is a noticeable pattern to keep in the back of your mind as we go into tomorrow's trading day. Its usually overnight (my time at least, which is Central standard). Regardless, We should be coming to a full decision by this market this coming week. So for now lets sit back and relax and wait for the highest probably trade that we can find. I have orders all the way down to 4.5k in case of a huge washout but I don't expect my bottom orders to actually take. If they do, that will be quite exciting since the next target areas are 9k and 11k. Until then lets let dumb money fight over scraps.