I’ve been relatively quiet lately and a lot of that is due to the way the market has been trading. While I would love to say I took advantage of the recent weakness, the truth is I’ve been mostly taking it light with my trading. The market is in a difficult place for swing traders right now as we are oversold enough that shorting is likely too dangerous, yet it is too early to really get long in a meaningful way. Tops and bottoms are hard to trade and there is a decent chance we have more weakness ahead as we move into the summer. I jotted down some observations to see if a pattern emerges, and while I believe we have a good shot of bouncing within the week, there are enough warning signs to keep me mostly disengaged in my swing account from the markets for now.
Bearish observations
Bullish observations
I see more negative in the intermediate term which has me on guard. Are we headed lower? I won’t insult you and tell you I know the answer without a doubt. But, trading is not about knowing with 100% certainty what the next move is. Its about preparing for and then ''recognizing what is unfolding. I’ll be watching each of these observations to see if a new pattern emerges or if we settle into a true down trend.
Good Trading,
Joey