Why vertical trendlines can be dangerous...
Vertical trendlines are subjective. They are not definitive. What is definitive are horizontal trendlines. Hard numbers, if you over take another, there is no questions.. its definitive. While I am a huge fan of vertical trendlines and the things they can draw, I like it for when they are completed and we are heading in the opposite direction. I know so many people think a trendline was broken, we are in a bull market.. but lets look and I am winging this, I am not spending all day looking at tickers, I would rather slice my wrists than do that... but lets look at two that come to mind...
If we do over take the previous high on the last bounce.. I will then look for a higher low but because a vertical trendline broke, while I see the concern.. lets see if that vertical trendline just needs a new angle to it or if it is to be discarded all together.
Like I said.. there is a time to go in hard on the market and a time to play it cool and let things play out for a bit. This is a week to lay low and really see how things continue. If we do run tomorrow I am looking for a sell off to end the week. I would be very surprised to see the market run hard and just go sideways or continue. But hey, it is the market so play it cool for now... there will be a drop coming. How big of one? I know what I am looking for and you should too... see if it happens or not and make a play from there. If you are bullish and think this is the time to buy, I think you are buying the peek. If you are bearish... there is a drop coming so hang tight. Catch you all at the end of the week. I spent 2 hours on the markets today and that's and hour and a half to much. Play it cool though.. lay low for a bit.
Take a look... Shake Shack.. what were people thinking?
Ring Central.. what were people thinking?
If we do over take the previous high on the last bounce.. I will then look for a higher low but because a vertical trendline broke, while I see the concern.. lets see if that vertical trendline just needs a new angle to it or if it is to be discarded all together.
Like I said.. there is a time to go in hard on the market and a time to play it cool and let things play out for a bit. This is a week to lay low and really see how things continue. If we do run tomorrow I am looking for a sell off to end the week. I would be very surprised to see the market run hard and just go sideways or continue. But hey, it is the market so play it cool for now... there will be a drop coming. How big of one? I know what I am looking for and you should too... see if it happens or not and make a play from there. If you are bullish and think this is the time to buy, I think you are buying the peek. If you are bearish... there is a drop coming so hang tight. Catch you all at the end of the week. I spent 2 hours on the markets today and that's and hour and a half to much. Play it cool though.. lay low for a bit.
Take a look... Shake Shack.. what were people thinking?
Ring Central.. what were people thinking?
Comment:
Your new trendline may end up looking something like the red one... my point is.. dont just rely on a vertical trendline. Its a developing pattern Pay more attention to if we take out the high from the last bounce in February.
Comment:
My arrogance seems to be working. Who cares about SPY .. it will be coming down before people know it and back in the teens. In the meantime onward... oil. Keep an eye on those boxes. You can lock in some of that money .. trail this at this point. Dont let it out of that green box. Look for the reversal.. you then can go short.
Comment:
- Not a Doofus unlike many that troll this board lol
