Good morning Trader, How is you?
I have taken a good break for a couple of months. I did miss a couple of market swings, but I was working on other important opportunities for myself. So, I didn't miss anything for not trading for the past 2 months. I got back couple of weeks back, I took time to settle into a rhythm, I traded on paper for 2 weeks. I am ready for new trades.
The market hasn't gone anywhere in the last 1 1/2 months. In the market, there are going to be phases like this. Hence, even if you are a market trader (trading /ES or SPY or QQQ...), you will benefit if you trade some other stocks with high volume, big market caps, no/ low news tickers. Every single ticker doesn't always rhyme with the market.
VST/ ST/ IT/ LT - on Sell obviously (no positions)
VLT - ticked to Sell right now but too early as we are only in the 1st week of the month, things can change by the end of this month
For definitions of my time frame terms - click here
We are on sell mode in all time frames, things look gloomy, huh? If you are already on the short side, hold on! I do not suggest new positions in the middle. I am looking for a turn, however. Few of my barometers have been suggesting a turn (one below in the chart) but price is king and indicators are queen. Barometers like the below only suggest me that a possibility of a turn is possible, but no guarantees till the price turns.
I have posted this chart few times in the past to pick tops and bottoms. At this point of this barometer, it can be said we are forming a bottom. It doesn't mean you exit your current positions. It means that you should be on alert for the possibility of an exit/ scale out of your current (short market) positions.
VST - Buy
ST - Turned to buy at 9 am EST
IT - Sell
LT - Buy
VLT - Buy