Comments on market

    Posted by matt on 4th of Dec 2019 at 02:15 pm

    $SPX - Chart Link - here's a chart I haven't posted in a while, but it is a good educational thing and something I've discussed many times. 

    The chart is a daily SPX that focuses on the 60 Stochastic when it is embedded above 80% and has been for at least a week or two, that is a trending momentum condition. 

    When the market pulled back strongly this week, the 60 Stochastic was still way over 80%, and yet a huge number of people get very bearish.  The fact that the the 60 Stochastic remained well over 80% was a positive sign for the market, and you can buy when those fast oscillators indicators I show get overbought with a stop say predicated on the 60 Stochastic going back below 80% or use an ATR Trailing stop like we use on the BPT MA Deluxe. 

    In the short term we got a nice bounce today, now we'll see if we still form a lower high or chop around a bit and if the 60 Stoch remains above 80%. 

    Update: Comments on market

    Posted by matt on 4th of Dec 2019 at 03:12 pm

    $SPX - Chart Link - pinching on the ribbon pretty good now

    I  exited part of the

    Posted by steverobin on 4th of Dec 2019 at 03:14 pm

    I  exited part of the systems trade because the gain was strong.  Thank you!

    covered my call at SPX

    Posted by retirefire on 4th of Dec 2019 at 03:32 pm

    covered my call at SPX 3119

    one other comment, a buddy

    Posted by matt on 4th of Dec 2019 at 02:17 pm

    one other comment, a buddy of mine who has developed some interesting sentiment indicators, his stuff has been showing all through the fall that traders keep getting way too bearish on any little pullback in the market.  Basically you get even 1 day pullback and everyone is super bearish again. Honestly that's not how tops are formed, you need complacency

    basically traders know the market is overbought and keep looking to catch the top but it doesn't work that way


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