The Falling Sword
I was just finishing to get suited up, locked and loaded, and before I know it the damn battle is already over. May have been better this way as the tape was leading us through mine fields today. Continued drops across the board except for the VIX, bonds, and the Dollar of course. Here we go – equities first:
What started as a low volatility slide in late December picked up a bit more steam today as it filled that volume hole near 2050. We’ve got plenty of participation below that and thus far it’s acting as buying interest. Should that change then I think we drop to 2020, perhaps a few handles below.
Early signs of trouble were two failures to overcome the 25-hour SMA which eventually resulted in a fast slide lower. Personally I have little desire to buy anything here just ahead of the weekend. So let’s just be patient and keep our powder dry for next week.
Bow to the dominion of the falling sword – my condolences to whoever was foolish enough to step under this one – word has it plenty of fund managers got manhandled here in the past week. Another text book example why you should run for the hills if you ever hear the words overbought or oversold.
No. Such. Thing.
It doesn’t matter where it’s been – all that matters is where it’s going. And right now it’s going DOWN. Deal with it – accept it – embrace the pain. Let price tell you when it’s ready to produce a floor. Sure, it may turn on a dime – but you really think you’re the one making that call? 😉
One more falling sword example below the fold – please join me in the lair:
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