Hello friends. The market recently announced that there has been a reversal from the Oversold condition into the Overbought condition. According to the SentimenTrader Backtest, this will provide us with an excellent signal to get long on the market. 62% of the time, this signal led to higher prices within 1 month, and it was 83% of the time within 2 months. We can also see that small options traders still love to bet against the market, and despite the pullback sentiment is still teetering right on the edge of Extreme Fear based on CNN's data.
We did a good job with buying on the 17th to generate a profit, but there's nothing telling us that this rally up is fully over. The only cause for concern at the moment is the fact that the bearish moon recently dropped, so we must be patient with our entry. It could be that we see a B wave pullback to the Golden Zone, probably tapping the 0.618, and then a rally much higher for the market.
I really like trading on this time frame because it's just calmer, and I don't have to pay nearly as much in fees. Plus, I have the added benefit of being able to make use of macro indicators like this indicator showing us an 83% chance for prices to be higher within 2 months. To trade that, you don't need to do much more than be patient, but that alone is hard enough.
Thanks for playing.
We did a good job with buying on the 17th to generate a profit, but there's nothing telling us that this rally up is fully over. The only cause for concern at the moment is the fact that the bearish moon recently dropped, so we must be patient with our entry. It could be that we see a B wave pullback to the Golden Zone, probably tapping the 0.618, and then a rally much higher for the market.
I really like trading on this time frame because it's just calmer, and I don't have to pay nearly as much in fees. Plus, I have the added benefit of being able to make use of macro indicators like this indicator showing us an 83% chance for prices to be higher within 2 months. To trade that, you don't need to do much more than be patient, but that alone is hard enough.
Thanks for playing.
Comment:
I have noticed that if you look at the chart it emotionally "Feels" like it should just rip back down again, especially when taking into account that it has been doing that for awhile, and pounding down on any bulls who run late into these sharp rallies. When the chart feels like that, it's exactly when it rips right to the upside, more often than not...