Patience, anticipation and plan A and Plan B is the safest way to trade this market. Understanding how people THINK is key to positioning your trades accordingly. How does one learn how traders think? Follow Sentiment-Time and Patterns! The 2942 short entry was taken because we saw a series of extreme bullish sentiment readings and the spx was trading within a bearish wedge with massive bearish divergences. That was our clue that a drop was pending as the "Herd" listened to the media outlets pounding the table that we are heading higher-much higher and you must get in now. Don't get me wrong, there we plenty of head fakes down, but when you take a short position, one must go in expecting to get stopped out a few times, as the bulls never leave the party until they are forced out. Our stops were always very tight-less than 1/2% and as frustrating as it was, the upside was very dangerous and on borrowed time. I will continue this in the comments section below-so you can ask questions. 100 SPX points or money back--ending soon, very soon-especially if I decide to trade the right shoulder!
