Market Condition, Trading Conditions and Strategies

Here are some important terms for traders to understand.

Market Condition refers to the overall long-term trend, where we are in the CYCLE of the Stock Market.

Trading Conditions are identified and traded by using the day over day and week over week trends and trendline patterns within that Cycle.

Strategies relate to a specific trading style based on the current Market Condition and the Trading Condition(s) within that particular Market Condition.

The Market is in a Moderately Uptrending Market Condition at this time. Trading conditions vary from sideways trends to Velocity runs, to minor corrections.

The market is choppy and sideways. Volatile markets have huge white and black candles that change abruptly from one day to the next based upon WHO IS CONTROLLING price.

In the sideways trend we’re experiencing now, different market participants are taking different actions:

• Professional Traders are mostly trading to the upside.
  
• There are also smaller funds managers with less than $3 billion in assets under management, aka Retail Side Asset Managers.
  
• There are fewer retail investors and retail traders are mostly sidelined right now since they are worried.
  
• There is some minor Dark Pool rotation to lower inventories of specific stocks in the NASDAQ 100 index, which impacts the QQQ ETF.
  

Understanding the dynamics of the Stock Market helps you trade with confidence, making decisions based on real market conditions instead of retail news—which is always late and often drives manipulative activity.