The Holiday week had surprised the traders seeing a strong move downside on Black Friday. I was one of then. Having a habit to wake up and watch the EU opening sometimes is rewarding :) The official narrative is a concern over the virus mutation found in Africa. Don't you find that news convenient to initiate a move to downside? Look at the chart - you can't make this stuff up. A touch of the projected level R1, wave 5 completion. The move happened in the overnight session while the traders were digesting the turkey and sleeping well. If you were in this business for a long time you should know all the tricks under the market makers sleeves.
I mentioned in my previous posts that News is used by one of the sides to achieve their goal.
What to expect next? Simply watch for the inflection levels and the price reaction. There are a few decent levels below that may trigger a bounce. Also if the wave 5 is complete we may see a consolidation within wave 4. The market is coming into month end, some portfolio rebalancing may happen and that supports the idea of the consolidation going forward.
Don't be surprised if a rally happens within that consolidation area supported by a narrative that the virus ain't that serious as it was thought and the existing vaccines are effective. The market maker has created some fear that would be enough for short squeezing.
Ignore the news, watch the inflection levels. The market is here to enrich you not to get you.
Because of the world wide stock market decline on 11/26/21, 2 % across the board, it does pay to think preservation of capital right now is paramount. I am avery active day trader, been using TQQQ, 3 X Long NDX 100 to buy the recent dips. However after Friday's sharp decline, buying the dip right now with any kind of size, could significantly backfire on a dip that continues to go down. Best of luck this coming week.
SviCapital
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@The_Unwind, Thanks. Sure it could continue further decline. Since shorting at this location is more riskier It makes sense to catch a bounce.
2 % across the board, it does pay to think preservation of capital right now is paramount.
I am avery active day trader, been using TQQQ, 3 X Long NDX 100 to buy the recent dips.
However after Friday's sharp decline, buying the dip right now with any kind of size,
could significantly backfire on a dip that continues to go down.
Best of luck this coming week.