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The completed Monday 0.3% larger and stays above 4,100 help for the sixth session in a row.
Whereas that feels like a good outcome, open the intraday chart and the scenario seems lots much less encouraging. Yesterday was the second day in a row the index completed on the intraday lows and the fourth time that’s occurred out of the final 5 periods.
As I usually remind readers, it’s not how we begin however how we end that issues most. Whereas Monday completed within the inexperienced, that 0.3% shut was effectively beneath the morning’s highs. The index popped 1.3% in early commerce, patrons disappeared, and we completed on the intraday lows. That’s as ugly because it will get for a day that technically finishes inexperienced.
The index remains to be a handful of factors above 4,100 help, however at this charge, a violation is all however inevitable.
I nonetheless assume Could’s rebound has the potential to problem 4,300 over the following few weeks, however we have to tread fastidiously over the following few days. The market is way stronger than any of us and it doesn’t care what we predict. If it needs to dip beneath 4,100 and retest 4k help, who am I to argue with it? I’ll gladly take income close to 4,100 and wait to purchase the following bounce.
Whereas my stops are unfold beneath 4,100 help they usually didn’t get violated by Monday’s late retreat, the weak closing worth motion satisfied me to begin peeling off some income proactively. Shopping for again in is all the time lots simpler than praying the market bounces again to the degrees I want I bought at.
I shifted to a defensive posture and took some income however I solely peeled off a partial place. Moderately than lurch all-in and all-out of the market, I like hedging my bets by shifting in partial positions. If the index tumbles Tuesday, I took some income at larger costs and have these funds safely in my pocket. However, if the index bounces again Tuesday, I’m nonetheless holding a partial place and might put the remainder of my a reimbursement in. That’s a win-win in my e-book.
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