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Happy Weekend, traders.
There’s not a whole lot I can do here until our relationship with the H&S neckline is resolved. But, i do have another thought, and I thought I would put it out there this weekend, too.
First, I want to revisit the “neckline bear trap idea” from a couple of weekends ago. In that article, I discussed how I was going to be somewhat agnostic for a while, uncommitted if you will, and that even if the market rallied back above the neckline, I would acknowledge that it could be a trap and would be wary of drawing any conclusions in the short term. Here’s what that “trap” idea looked like at the time:
Since then, after getting closer to the 200-day, I went on my little vacation and when I returned, I found we had driven ourselves, sure enough, back up over this neckline, and I decided to try to sell, to see if it was, in fact a trap. And we’ve seen some selling so that looked good and especially that puke on Thursday was magnificent.
But, here’s a couple of additional thoughts on this for now.
This can all change of course, and we’ll play it as we go. But I thought I would add to my brief remarks from Friday with a few extra ideas.
I hope everyone has a lovely weekend.