Hey Market Pilot,
I am curious how many people will be buying the market because news headlines from last weekend will say, “Market hit new all-time high.’ People will think this is amazing and a clear sign of market strength so they should get in… Only to have the market most likely drop lower on them. The market is shifty like that.
Reaching the previous high was like a magnet for price, especially as it crawled up the last few days.
In the screenshot below, you can see how price went sideways and then just barely bounced off the 15 minute 50 simple moving average (SMA). This was just enough support to allow price to reach up and tap that bell. Then, immediately after hitting that high, price dropped hard.
This is a recipe for disaster with traders who can’t see what is happening around them.
This week ought to be interesting as the market has looked quite strong the past few days, but I feel it is only to lure traders in on the long side and squeeze them out on the short side.
I don’t know how far the pullback will be, but there are many charts that will be in price buy ranges once the market does drop. So let’s build a list of names for the long side while the market drops so we are ready for the next move.
Your Profit Pilot, TG