Well it’s one of the two anyways. Markets are getting hammered today and fortunately we were highly suspicious of triple or quadruple bottoms and came in with a trade plan that pointed to lower targets. I had been pointing to various analogs in the public stream that showed structures that demanded more downside.
The key question of course is what’s next. I’ll give you two scenarios:
1. Keep calm, it’s just a regular pullback in a long string of similar pullbacks:
Or scenario #2: Kiss your ass goodbye. This monthly MACD crossover and negative RSI divergence says we are going a lot lower:
You pick. Key is to have a trade plan and risk management in place. For more information about our trade philosophy please visit the About and Trading Process pages.