Now Reading
Going Down
0

Going Down

by The MoleSeptember 4, 2020

Well that didn’t take very long now, did it? Just two days ago I was bemused by a market seemingly running on cruise control and pushing up vertically during what is historically considered a bearish week. Of course the ensuing correction yesterday looks rather obvious in hindsight to the uninitiated, but let me assure you that I have seen raging rallies like these extend far beyond anyone’s imagination on numerous occasion in my time. In other words, if you somehow managed to pin the top then strike it up to good luck and keep your ego in check.

Interestingly the ATHs almost exactly reversed at the upper expected move (EM) threshold and, after having burned a boat load of stops, bounced back near the lower EM threshold. Coincidence? I think not.

To nobody’s surprise previously high flying tech stocks got hit particularly hard. Not because they are ‘overvalued’ or deserve it – that’s a different story – but at some point you simply run out of buyers, especially heading into a long weekend and with participation running on fumes (see the Zero indicator over the past few sessions).

Sellers took a big bite out of AAPL which dropped 15% in two sessions. Will the carnage stop here? Tough to say but the disadvantage of a relentless rally like this is that it does not leave much in terms of technical support levels investors/traders can hang their hats on.

As usual TSLA is outdoing everyone else in the volatility department and went from 500 to 400 in 48 hours flat. The good news: it’s still trading near $400 but once again I don’t see much in terms of technical context here, so today’s session may get interesting.

There are two chart that really gripped my attention however as they may offer us an exciting opportunity next Tuesday:

evil_separator

It's not too late - learn how to consistently trade without worrying about the news, the clickbait, the daily drama and misinformation. If you are interested in becoming a subscriber then don't waste time and sign up here. The Zero indicator service also offers access to all Gold posts, so you actually get double the bang for your buck.

Please login or subscribe here to see the remainder of this post.



About The Author
The Mole
Mole created Evil Speculator amidst the chaos of the financial crisis in early August of 2008. His vision for Evil Speculator is a refuge of reason, hands-on trading knowledge, and inspiration for traders of all ages and stripes. You can follow him and his nefarious schemes at the usual social media waterholes.
Enjoyed this post? Consider a small donation to keep those evil deeds coming!

BTC: 1MwMJifeBU3YziDoLLu8S54Vg4cbnJxvpL
BCH: qqxflhnr0jcfj4nejw75klmpcsfsp68exukcr0a29e
ETH: 0x9D0824b9553346df7EFB6B76DBAd1E2763bE6Ef1
LTC: LUuoD6sDWgbqSgnpo5hceYPnTD9MAvxi6c
PayPal: https://paypal.me/evilspeculator