Yes, I am working on several new approaches for my trading understanding. Not only as strategy or scan because I worked on a new code idea as well. There will be new articles soon and this one will be a little shorter for not to add too much different content in one blog post.
What was that? Such a nice bullish week with a return of +2.2% at Friday’s open. But then it got sold to a weekly result of +1.6%. Market-Crash started on Friday. Or what do you think?
A bearish engulfing screwed everything up…
Of course, I am joking. After so many bullish days it just felt like a little crash for many of us. We’ll see if such a headline will lead to more views of the article. 😉
Yes, the market lost about -0.6% on Friday and there was a sell off to the close. And yes, it was a bearish engulfing. But I like this pattern because of it’s clearness and it was predictable:
First of all I wrote last week that there’s no signal yet for a reversal. And so the SPY continued it’s rally to a new all-time-high.
The transparent boxes around the weeks in the chart are the areas for the expected move I mentioned in the last two weeks (and I should write a separate article about 😀 ). The upper limit of last week’s box was broken above on Thursday. And because it’s “expected” that the SPY closes the week within the box it “had to” move back.
The bearish engulfing will move the price lower next week with a high probability. When we will see a doji or inside bar on Monday then I would expect a more sideways or maybe little upwards movement. But it is more likely that we will go back down to $320 and then back to $322, the lower limit of the expected move, in my opinion.
But for not to predict the market too exact, let’s say that we will have more possibilities for the bears than for the bulls. And I would support that although I will have some losses of my swing trades then. A pullback would spend us the healthy rest the market needs after the bullish rally.
Again about my positions…
Just to let you know that I am still trading swings consistently and with strict rules:
JBL is a new position of the week from December 30th on. RH is new since last Monday. SRNE and ARDX were stopped out this week and BLDR reached its first target.
I do not analyze each trade here because it’s more useful for both sides when including approaches and details and summarizing what I learned from my trades.
If you miss this section just tell me in the comments and I will add it again next week.
Therefore I will write new articles soon: One will be about coding, one about a new tool I discovered for me and one about my new start of day-trading futures (some of you may know that I did last year).
So, it will be excited, the Market-Crash started on Friday 😉 and I wish you a healthy, profitable new week in 2020!
