It sure seems that way, doesn't? We are up one day and down the next. I'm not surprised with the market's action, it is what I expected after such a big drop.
It's Thursday and while this is an important day, I think Friday is going to be a more important day. Last Friday we saw the Dow Jones close at 16,643.10, the S&P closed at 1,988.87 and the NASDAQ closed at 4,828.54. As I write this, all three major indices are lower than last Friday's close and are down for the week. However, they are not lower than the recent Friday low close we witnessed just a few weeks ago when the Dow closed at 16,459.75, the S&P 500 at 1970.89 and the NASDAQ at 4717.16. Those closes in my mind are all crucial, if they are broken we could see a continuation to the downside. If they hold, it gives hope to the bulls that this was just a short-term correction and the markets will start going back up.
I think we'll see more choppy action with the news from the Fed, China and other economic data continuing to show a mixed picture at best. I have said this before, China is not just going to turn around any time soon, it is going to take some time for China's economy to get rolling again.
So what is a trader to do? My best advice is to watch the markets and let them settle down, there will be plenty of opportunities to make money. There is nothing wrong with watching from the sidelines until the dust settles. Many of the best traders I have known through out my decades of trading experience practice this very same philosophy.
Over the years I have learned to trust the Trade Triangle technology. It is totally unbiased, it doesn't care if the market goes up or down. As human beings we all have our biases, but the Trade Triangles simply follow the flow of the market and that's what you want to do as a trader, go with the flow and don't fight the trend.
In today's video I will be looking at all the major markets and sharing with you the latest insights into what the Trade Triangles are indicating.
Stay disciplined and have a good trading day.
Every success with MarketClub,