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This is ridiculous. There have been more false breakdowns lately than I can remember. The new technical rule is: When stocks break support, buy.
Which is, of course, the opposite of the old rule.
It’s the bots and the AI, AI, AI. They’re doing this. Everything is random, or made to look random. The 4 day cycle low came 4 hours later and 40 points lower than I thought. Good for a great shakeout, or shakedown, whatever the case may be.
How are we supposed to trade this? Well, if we had drawn the correct channels, the drop did stop at the exact convergence point of two trendlines dating back to the early August low. So there’s that.
Now the up phase. Resistance is around 5619 in the opening hour in New Jerk. Spport is around 5588. Given that this is early in a 4-5 day cycle up phase, I’ll take breakout for 5630, Alex. It’s not much, but it’s all I got right now. If they get through that, let’s talk.
Swing Trade Screen Picks – Short Inundation
Meanwhile, in the Department of Does BTC Lead? The answer is sometimes. It led on the way down, but not on this bounce. When something works sometimes, but not others, it’s not helpful. Seems to be how TA in general is going these days. But the search for eternal truths goes on. Maybe it’s that all is random as opposing trading bots duke it out as they synthesize all available knowledge, and some that isn’t available, to gain an edge against the other bots.
Over on the fixed income side, the 10 year yield has reached perfect equilibrium at 3.83. No further trading is necessary as the Primary Dealers arrange for the market to swallow a gargantuan issue over the holiday weekend. Liquidity Still Supports the Rally, But with Warnings
For the big picture and longer view, subscribe to Liquidity Trader!
For moron the markets, see:
- Swing Trade Screen Picks – Short Inundation August 28, 2024
- Liquidity Still Supports the Rally, But with Warnings August 27, 2024
- The Market Still Blows August 26, 2024
- Liquidity Now Hinges on Mood August 19, 2024
- Bits and Pieces- Why What Was Bearish is Now Bullish August 15, 2024
- Tax Collections Were Worse than the Jobs Report But… August 5, 2024
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