When it comes to the financial markets nothing ever moves in a straight line. For one that would be way too easy and if you’re looking for easy then I recommend you find yourself a hobby instead. That is probably one of the most difficult lessons to learn for fledgling traders as our minds are linear and short term oriented by nature while participation in the financial markets requires the exact opposite: non-linear long term oriented thinking.
I promised you impending drama on Monday and Ms. Market decided to ship out a whopper via next-day delivery. Unlike many of the muppets who pride themselves to be market analysts I am among the few who admit to have zero prophetic abilities. But frankly you didn’t have to be Cassandra to recognize the divergences that had been accumulating right in front of our eyes.
It’s a short trading week and on average they do tend to be a bit sleepy due to a lack in participation. This was evidenced by the reduced weekly trading range stats I posted on Monday. However the gyrations we’ve seen thus far are tantamount to running in circles, which potentially opens up some interesting low probability profit opportunities for us.
A longtime subscriber wrote me the other day thanking me for the opportunity to grab $TLRY right before it kicked into short squeeze mode and exploded higher. In his words: “Not sure if you’ve seen but $TLRY short squeeze is in full blow status. It’s now pre market at 65ish. The only reason I got into it was because I followed your Short Squeeze setup. I got in at 22.61!! I only had a small position, but it’s going to pay for the cost of the strategy probably about 3000%! And it was a textbook entry on your system.”