🖼 Daily Technical Picture 📈
➤ Kind of like opposite day with today's price action acting in reverse of Tuesday. Again, tight ranging and finishing flat. Yesterday I posed the question: Who Blinks First? Alluding to the idea that there is a regime shift incoming that will determine a period of Bullish prosperity or a brutal Bearish collapse.
➤ Whilst it is way too early to come to a conclusion, I must admit I have blinked first in the favour of the Bulls by adding a small long position using the $SPY. Let me explain why...
➤ Recall that I posted a recent note introducing a secondary Trading strategy to compliment my primary source of return. The long SPY position is its debut. One of the key reasons for implementing the secondary strategy is that on average it has a much longer holding period. This is especially true in the case of a long/buy position.
➤ An achilles heal of my primary strategy is that it is very sensitive to price movement. Trends can be bumpy along the way meaning that it sometimes does not allow me to ride the full extent of a huge trend (up or down). My secondary strategy does a better job at that.
➤ With that in mind, today's buy reflects a potential extension of the current up trend for a while longer. If true, that would give the Bulls the opportunity to close April beyond the Feb 2023 high. In my past notes, I have discussed the importance of such a monthly close and how that favours a return of a long-term Bullish market environment.
➤ Clearly, my buy signal could be wrong and exited soon. However, that is the state of play as I see it and the month is nearing drawing to a rapid close.
➤ Despite the new buy, my overall long exposure is still small.
➤ Conclusion: 🐆 Trust your signals, don't second guess.
EQUITY TREND:
⦿ Short-term (weeks) - UP
⦿ Medium-term (< 6 months) - UP
⦿ Long-term (>6 months) - DOWN
➤ Kind of like opposite day with today's price action acting in reverse of Tuesday. Again, tight ranging and finishing flat. Yesterday I posed the question: Who Blinks First? Alluding to the idea that there is a regime shift incoming that will determine a period of Bullish prosperity or a brutal Bearish collapse.
➤ Whilst it is way too early to come to a conclusion, I must admit I have blinked first in the favour of the Bulls by adding a small long position using the $SPY. Let me explain why...
➤ Recall that I posted a recent note introducing a secondary Trading strategy to compliment my primary source of return. The long SPY position is its debut. One of the key reasons for implementing the secondary strategy is that on average it has a much longer holding period. This is especially true in the case of a long/buy position.
➤ An achilles heal of my primary strategy is that it is very sensitive to price movement. Trends can be bumpy along the way meaning that it sometimes does not allow me to ride the full extent of a huge trend (up or down). My secondary strategy does a better job at that.
➤ With that in mind, today's buy reflects a potential extension of the current up trend for a while longer. If true, that would give the Bulls the opportunity to close April beyond the Feb 2023 high. In my past notes, I have discussed the importance of such a monthly close and how that favours a return of a long-term Bullish market environment.
➤ Clearly, my buy signal could be wrong and exited soon. However, that is the state of play as I see it and the month is nearing drawing to a rapid close.
➤ Despite the new buy, my overall long exposure is still small.
➤ Conclusion: 🐆 Trust your signals, don't second guess.
EQUITY TREND:
⦿ Short-term (weeks) - UP
⦿ Medium-term (< 6 months) - UP
⦿ Long-term (>6 months) - DOWN
🏆 eToro Popular Investor 💰
✅ Copy My Trades @ eToro, www.etoro.com/people/mrstocky
✅ Verified Track Record 📈
Not Investment Advice
✅ Copy My Trades @ eToro, www.etoro.com/people/mrstocky
✅ Verified Track Record 📈
Not Investment Advice