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StrayDog RANT about markets /Dec 18, 2018/

Updated: Sep 26, 2019

I am old enough to remember the times when bulls didn't have to rely on FOMC to save them - good times. You could even find plenty of good cheap stocks. When all of that become expensive as hell, they pushed it artificially higher with QE.

Some of the people fall in the perma-bear trap because of that. But charts was speaking otherwise. The point is that you don't have to like it, but you have to trade WITH the trend, whatever it is.

Now the perma-bulls have the same issue. They keep buying dips, ignoring the charts, ignoring the context, volatility, everything. Keep finding inverted H&S, cup and handle, bullish wedges and other bullish patterns INSIDE bearish environment - that does not work now.

Usual bullish setup after the open: market makes the pullback to overnight low, false break (spring) and up it goes.

Now we have markets going to the ONH (overnight high) and FAIL there. Make an upthrust (failed breakout) or simply fail. Complete opposite.

Adjust to that, while it last.

Clear bullish environment - buy dips. Clear bearish environment - sell rips. Counter trades with more attention, less risk, smaller lots, or just skip. Neutral environment - hit the long and short.

I know this is challenging times to trade, be careful and pick your fights, at the end – the only true edge you have is good trading location.


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