As an update to the idea I shared back on September 9th, we did make that rally on Monday to ~4100 as I stated and also I said we would have no idea what the catalyst would be, but we would break down.
Look at the evidence.
Now that we are where we are, I always look at evidence of a bottom forming. Right now, the only thing somewhat bullish is the way Friday ended. I would not get too antsy to open up long positions right now. It's best to sell the rips at the moment. As long as selling the rips works, why change? As long as you don't do anything stupid with your risk management, you will be fine.
Keep an eye on other sectors, especially cryptocurrencies, for either a reversal or a continuation of the trend which is down. We currently have two immediate downside targets. If these hit, it will likely happen next week. The first level is at that 123.6% extension at 3610, then at the 161.8% extension at 3460. Imagine the devastation the market would be succoming to if we go below 3500.
I wouldn't be surprised to see a few green days, though I am not planning for it. I would be cautious to open any new short positions here at this time. I gave you the warning literally 1 day before the collapse, so if you're looking for shorts now, then you really are a retail trader. Ignore the warning back then, and now you're chasing it. That is not how you create an edge in this market. That is how you create liquidity for the people stealing money from you.
Do I think we go lower? Yes. Do I think we go straight there? No. Do I think the easy money is gone? Yeah, probably.
Look at the evidence.
Now that we are where we are, I always look at evidence of a bottom forming. Right now, the only thing somewhat bullish is the way Friday ended. I would not get too antsy to open up long positions right now. It's best to sell the rips at the moment. As long as selling the rips works, why change? As long as you don't do anything stupid with your risk management, you will be fine.
Keep an eye on other sectors, especially cryptocurrencies, for either a reversal or a continuation of the trend which is down. We currently have two immediate downside targets. If these hit, it will likely happen next week. The first level is at that 123.6% extension at 3610, then at the 161.8% extension at 3460. Imagine the devastation the market would be succoming to if we go below 3500.
I wouldn't be surprised to see a few green days, though I am not planning for it. I would be cautious to open any new short positions here at this time. I gave you the warning literally 1 day before the collapse, so if you're looking for shorts now, then you really are a retail trader. Ignore the warning back then, and now you're chasing it. That is not how you create an edge in this market. That is how you create liquidity for the people stealing money from you.
Do I think we go lower? Yes. Do I think we go straight there? No. Do I think the easy money is gone? Yeah, probably.
