We've asked our friend, Brian Shannon of Alphatrends to share with us his Stock Market Video Analysis of the week. We think you'll find his take on the markets interesting and insightful. Brian is a full-time trader, educator and author of the highly regarded book Technical Analysis Using Multiple Timeframes. He's also the founder of Alphatrends. His expertise has been achieved over a 20-year period as he has navigated the difficult path that relatively few traders follow to success.
The markets experienced more strength this week, once again punishing those who choose to fight the trend. Despite scary news headlines, all year this market has continued to move higher, of course there have been pullbacks and those periods of weakness allow the market a chance to digest gains and reveal where the low risk trades are setting up.
It appears that the market has gotten a little too extended to sustain upward momentum for now but that is not a reason to call for a top. It is time to adjust stops on longs and let the market show us if there is going to be further profit taking and what the next group of low risk setups will be. The video below takes a look at key levels for markets and some important lessons from stocks that Alphatrends subscribers were involved in.
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Have a good weekend!