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I don’t do Whatifism. I’m not smart enough to play that game. So I do Whatisism.
Whatifism is a waste of time for me. Trade what the market gives you in the here and now, I say. If liquidity analysis says that a rally is unsustainable, then all the what-ifs we can think of will not help us. Watching the technical charts like a hawk for the signs of a turn, will.
In the meantime, for day traders only the TA (technical analysis) matters. Everything else is mental masturbation. Now I know everybody likes to masturbate, but please, not with your money! Such a waste! The return will be a loss, or zero at best.
Now here’s the hourly chart of the ES 24 hour S&P 500 futures. We had a dippity doo dah in the overnight, and now as of 6:15 AM in New York, they’ve come roaring back. 3-5 day cycle oscillators are signaling an up phase in those cycles.
Up is relative in a downtrend. Yes it could be a V bottom that goes up in absolute terms. Or it could be up only in relative terms. Momentum indicators rise, but the price gets stuck in a flat range. They often end in a breakdown when cycles turn down again. Or alternatively, the whole shebang can just go dead, laying there in a somnolent range for a while until impetus returns one way or the other.
The levels to watch here are 4116 to 4155. That defines a possible trading range. The breakout from that range should signal the direction of the next swing move in this very short term context
So for now we watch that trading range for signs and wonders, and please. Try to avoid that Whatifism, with multiple fantastic scenarios, and trade Whatis.
To understand and profit from the big picture check out the following.
- Swing Trade Screens – Hit the Jackpot Last Week, New Shorts This Week August 22, 2022
- Stock Market Uptrend Cracks – Look Out Below August 22, 2022
- Has Rule Number One Been Repealed? August 18, 2022
- Swing Trade Screens – Buys Overwhelm Sells, It’s Late But One Sector Looks Ready to Roll August 15, 2022
- Yikes! August 15, 2022
- Mildly Bullish Outlook for Gold Holds August 13, 2022
- “As Good as It Gets” Was Good While It Lasted August 6, 2022
- Treasury Confirms Supply Tsunami We Expected – Will Obliterate Everything August 3, 2022
- Withholding Tax Collections Solid in July, But Here’s Why the Party is Over August 2, 2022
- The Bond Rally That Fooled The Majority And Didn’t Help Dealers July 27, 2022
If you’re serious about the underlying forces of supply and demand that drive the markets, join me!
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