Hey Market Pilots,
On June 30th I wrote a piece about the SPY coming into the Daily 50 SMA and how we know when the bounce would be confirmed. I described how price can sometimes bounce exactly off a moving average or push a little past it before moving up. For my style of trading, I look at the lower time frames to see how that bounce is going to develop.
In the previous article I specified what I wanted to see from the charts in order to confirm the next uptrend:
It’s not until I see price get back over and then follow the hourly 50 SMA up that I would then begin to say the act of “price bouncing off the Daily 50” has begun.
As of 7/9/20, we got exactly that from the SPY when price pulled back from the 4th of July holiday run right into the Hourly 50 SMA. Here is another article I wrote on July 6th newsletter where I said “My expected behavior of the market after a bullish holiday run would be a pullback afterward”. That pullback took a few days longer to manifest than I initially thought but as quoted from the newsletter “I may have to be patient for that pullback” and so I was.
The price movement of the SPY has now fulfilled the rules of my Moxie Indicator trading method by getting over the Hourly 50, testing the Hourly 50 for support, and the Moxie Indicator going positive as price came down to the moving average support. If you aren’t yet familiar with it, the Moxie Indicator is my primary trading tool and I wouldn’t be where I am today without it. Moxie has been my trading companion for many years now and it’s what has given me the structure I need to make sense of the crazy market out there.
I truly love getting to write an article like today’s simply because I was able to reference two previous articles and quote them directly as to how I expected the market to move. What this tells me is that it is possible to learn the nature of the market; to a point where you can see just far enough ahead to make lucrative decisions that can enable you to take your financial future into your own hands. I used to know nothing about the stock market. Now I’m able to anticipate it. A successful life from trading is possible.
Over and Out,
Your Profit Pilot