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Look back over the past, with its changing empires that rose and fell, and you can foresee the future too.

— Marcus Aurelius

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Friday, October 18, 2019

Chop, Chop

The markets are playing with US!

Breakouts to the upside - no follow-through

Breakouts to the downside - no follow-through

WEARING market participants out

Basically, the bus is slowly being emptied -
BOTH buses!

BEAR BUS
if you can trade a bear move and get it RIGHT - it can be exhilarating  - Think rollercoaster ride

 BULL BUS
Bull moves - slow and steady (generally) not as much adrenalin rush


What does this look like on a chart?

Nasdaq weekly
clear rising wedge (usually a bearish formation, although to really clear the bus, typically it will rally above the line  (shorts will run for cover and bulls will load up), before a sharp reversal.

Conversely - if it breaks down, similarly it will fall sharply and then rally to re-test the break - catching many market participants out

With ALGO trading dominating the current market,  the moves will be exaggerated
Step back to see the TREES!



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