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There was pre FOMC short covering today
Choose between biases when appropriate to make more money
One of the things that surprising to most people is that the market goes down when they buy it and when they sell it it goes up. Not me, I dont do that. I almost always use cyclitecnical information to qualify trades. And I dont guess anymore, although fun when youre right, its lazy and noone is helped by guessing.
If I short the market here, I could be surprised when the Fed pivots next meeting and doesnt raise rates. That would hurt my short and I would probably get out before the meeting.
BUT IN THIS CASE
The longs were saying… Im fine to stay in longs right up to the FOMC meeting
Thats distinctively different.
The shorts were waiting until after the meeting.
So we have a good idea that short term traders are in charge, and can push this market plus or minus 10 to 15% in any direction in the months ahead, very easily. The long term traders will provide guidance. So its best to play both. But dont be jumpy.
Please remember that there is a probable bull flag of the 80 week cycle forming or formed in the US stock market. This is because of the pivot by the Fed recently, corporate layoffs, corporate cash etc.. MASSIVE FUNDAMENTAL INTERACTION.. so be careful, this is all new to us and to the markets this position we are in!
That will eventually end. The cycles will turn down into 2024 for a monster short if the Fed slows the rate of downside here…
But Im writing this so you know that you have to play both sides.. long term and short term trading in order to make bigger sized winners and even out income.
In order to change biases, you have to become a cyclitecnical analyst.
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