Nasty day in the market after SPY broke down the bear flag pattern that I mentioned in last post.
As i write on the last post,”A low below Thursday’s low , 190 area will break the short term momentum, 20 MA. Bears might make a come back again if that happens”. Here we are , SPY broke that 190 support , bear came in hard and back to that 187 old support zone. However, after so many tap to this 187 support , it will be not surprising to see that support finally gets broken. So keeping an open mind and i will trade what i see based on price action. It is difficult to short some of the former leader names like GOOG, AMZN, FB at this stage of sell off, at the same it has been difficult to play them for a bounce trade since they seem to be on liquidation mode. I will be the watching them again on green to red type move for a short or if the market gaps down hard, for a possible bounce trade with tight stop. Tough market out there, if you are not sure about the price action, just stay out. Trade with defined risk and reward and a tight stop. This is the type of market, if you are long and doesn’t have a defined stop loss, you will be “a deer caught on headlight” and your short term trading positions will become a long term loosing investments!If you are struggling with your trading or learn how to trade you need to join our 60 day Bootcamp course. Our program is designed in such a way that you come out of it ready to trade live in just 3 months. We teach you everything from risk management to scanning to trading strategies. I also share my profitable intraday trading strategy which will make you money short term regardless of Market condition. The class is one of a kind, see why you should sign up for the course here . You will also have access to a private community where you can ask questions, share charts and talk with the instructors or other traders. You can also check out the testimonials from our students.
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