At S.C., we were able to save our followers from this lack of momentum that began with the trigger on Saturday. Instead of buying like the herd, we called for a limit order way under the market.
And more importantly we sent an instruction to cancel that order today by noon. People who followed were able to avoid the pull back into the 440s and are now patiently waiting for the next opportunity.
Price is probing the 455 to 439 . This is our next area of focus and IF the right signal appears, we will share our next swing trade long idea.
Do not bang your head against the wall trying to figure out why the alts are not following the leader. When it comes to short term market timing, it really doesn't matter why. Relationships between markets change constantly, and that is all you really need to know. As we say at S.C., it works until it doesn't.
Patterns, levels and formations offer a much better clue as to what is likely to happen next. Not abstract intermarket relationships or fundamental logic.
At S.C., we are anticipating a retrace over the next 8 days. There is no guarantee that it will unfold this way, but if the right signs show up, we are prepared to buy.
In summary, do not always measure a trade call by its profit target. If a strategy or method can also help prevent losses, that is just as good as a win. Anyone can call trades, but not everyone can call for a good market defense.
Location plays an important role when evaluating the probabilities of a particular idea or outcome. And the location of price in this market certainly features some compelling formations that make for an attractive long. It is just a matter of the right signal and having the patience to wait for it.
Also, bitcoin has broken my upper downward trend line in its falling wedge and is headed for battle at 10k, the previous high. Volume is starting to return. I expect alts will trail weakly along until 10k is broken and tested.