That Was Not Good, 16th November 2022

πŸ–Ό Daily Technical Picture πŸ“ˆ

➀ I didn't change the title from yesterday's post for an obvious reason. The news about the "errant" missile landing in Poland. The first thing that comes to mind is "uncertainty". Uncertainty is not good for markets albeit this one may be short-lived.

➀ That being said, from a technical view point, markets bounced off the daily low strongly closing the gap created by the higher open. The uptrend is intact for now. Speaking of gaps, there is a large gap unclosed since 13th Sept just above current levels in the S&P500 ( SPY ). There is also the massive gap created on 10th Nov when prices leapt higher post inflation data. The market likes to close those price gaps.

➀ The last of my long positions was closed. Leaving us in a familiar territory of having no positions. That's not a bad thing given the uncertainty.
The key to my Strategy is to only get involved when there is a clear price structure with a good probability of success. I don't think I'll be out of the action for long though. Price action on Wednesday will most likely determine new positioning.

➀ I currently have zero exposure in the market. The maximum portfolio exposure is +/- 200% on capital, the level of highest conviction.

➀ Conclusion: Wednesday is Action Day.

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