SPX500 has been riding on a high since its strong rebound from the bottom . Would this V shape recovery be over for now ?
Let's leave the forecasting and prediction to the expert.
Chart wise, we are seeing a break down of the bullish trend line and expects price to remain choppy over the next few weeks/months.
The key level of support, 3000 if taken out, we can expect price to heads further south towards
2764.
NOTE - Choose one index to short (RUT, SPX500, DJIA) as they influence one another , the only difference is the degree of fall. Do not be greedy to take all.
As traders/investors, we know that charts do not move in a straight line yet when we are riding happily on the strong bullish trend, we somehow, psychologically find it hard to accept when it is going to U-turn. Why ?
It is because you start to see your profits dwindling and you are not happy about it. However, we should change our perception and see it this way. This could means a signal to take profits , all or partial and change our tactics to sell or await to buy at a lower price.
This correction is necessary as there are many who are still not onboard or for those who wish to dollar cost averaging, that would be a good opportunity as well.
Look at it as buy then sell as a complete cycle. Yeah, having to start a new cycle again present some element of risks. Afterall, you begin to think if i re-enter to go long , would it gives me the returns like before ? If you have such thoughts, you may want to revisit your trading strategy and understand your objectives in buying or selling. Do not do it because a certain author said so. Each of us can tolerate a different level of risks. To some, a 20% drop is normal while others panicked and lose sleep over a 3% fall overnight.
I have said before , trading is a good reflection of your personality, use it wisely.
Let's leave the forecasting and prediction to the expert.
Chart wise, we are seeing a break down of the bullish trend line and expects price to remain choppy over the next few weeks/months.
The key level of support, 3000 if taken out, we can expect price to heads further south towards
2764.
NOTE - Choose one index to short (RUT, SPX500, DJIA) as they influence one another , the only difference is the degree of fall. Do not be greedy to take all.
As traders/investors, we know that charts do not move in a straight line yet when we are riding happily on the strong bullish trend, we somehow, psychologically find it hard to accept when it is going to U-turn. Why ?
It is because you start to see your profits dwindling and you are not happy about it. However, we should change our perception and see it this way. This could means a signal to take profits , all or partial and change our tactics to sell or await to buy at a lower price.
This correction is necessary as there are many who are still not onboard or for those who wish to dollar cost averaging, that would be a good opportunity as well.
Look at it as buy then sell as a complete cycle. Yeah, having to start a new cycle again present some element of risks. Afterall, you begin to think if i re-enter to go long , would it gives me the returns like before ? If you have such thoughts, you may want to revisit your trading strategy and understand your objectives in buying or selling. Do not do it because a certain author said so. Each of us can tolerate a different level of risks. To some, a 20% drop is normal while others panicked and lose sleep over a 3% fall overnight.
I have said before , trading is a good reflection of your personality, use it wisely.
Comment:
we are stopped out