Investing
Haven
No Result
View All Result
Wednesday, January 27, 2021
  • Login
  • Premium Services & Login
  • 2021 Forecasts
  • Commodities & Gold
  • Stocks
  • Crypto
  • Mission 2026
Crypto investing >>
Investing
Haven
  • Premium Services & Login
  • 2021 Forecasts
  • Commodities & Gold
  • Stocks
  • Crypto
  • Mission 2026
No Result
View All Result
Investing Haven
No Result
View All Result
Home Markets & Stocks

Stock Market Short Term Uptrend ‘On The Edge’

by Taki Tsaklanos
April 19, 2020
in Markets & Stocks
0
Tags: SPX
bulls bears
3.5k
VIEWS
Share on FacebookShare on Twitter

If anything markets are constantly ‘on the edge’ in recent weeks. And many ‘decisions’ are made pre market and after market hours. We have witnessed multiple occasions in which the S&P 500 was testing a major breakout/breakdown level during a trading session, only to open the next day with a gap up of 3 to 5 pct. How exactly to play this, medium term and short term? And what about our long term bullish stock forecast: Dow Jones Forecast For 2020 And 2021?

First of all, let’s map out on a chart what we mean by ‘on the edge’.

We’ll take the S&P 500, and ‘steal’ one of the many exclusive charts that members from our Momentum Investing and Trade Alerts service frequently receive.

Let’s start with the 2458 level. Between April 1st and 3d, this level was tested multiple times. Any position was hard to justify those days. On Monday April 6th markets open with a gap up, and moves more than 5 pct higher that day.

Similarly, on Wed April 15 and Thu April 16, markets were testing again the same ‘edge’ of a short term rising channel. Very tough call to get in … what if the test fails and markets go lower (the backtest of 2458 would be next, a 12 pct decline). On Thursday after market hours futures rise +3 pct.

So here are key observations for short term and medium term portfolios which we shared in our weekend updates to our premium members:

  • Short term trades: we believe risk management levels have to be very high, but the frequency of short term trades have to go down. The reason is not only what we explained before but more importantly the unusual fast pace of change. Something, somewhere, somehow in any short term trading methodology has to be adjusted to deal with these market conditions.
  • Medium term investments: what stands out is the week-on-week market rotation. Every other week there is another sector that leads markets higher, and those leaders tend to underperform the week after. Combine this with ultra high volatility, and most investors find themselves chasing prices higher, from sector to sector, week on week. This is ultimately bad for results, and the antidote we propose to our members is to bring in more stability and accept the fact that in a given week a market may be trending but not the one we are invested in. It’s a mental game, it’s an emotional challenge, as an answer to the market challenge.

These markets are very misleading, and many investors even are not aware of this. They see indexes move higher, and check their accounts against moves of indexes. It’s literally an explosive mental and emotional reaction that an investor evokes by playing this game. More than any other time, a good balanced way to take trades / choose markets / pick timeframes is required. Anyone who has the skill to read a chart, and sees below chart, knows what we are talking about.

spx

  premium service trade alerts   premium service trade alerts   premium service crypto teaser  
Taki Tsaklanos

Taki Tsaklanos

Taki has +15 years of experience in global markets. His methodology is unique and effective, yet easy to understand; it is based on chart analysis combined with intermarket / fundamental / sentiment analysis. His work appeared on major financial outlets like FinancialSense, MarketWatch, ... Email: taki.tsaklanos@gmail.com. Twitter: twitter.com/investinghaven

  • Trending
  • Comments
  • Latest
silver prices

A Silver Price Forecast For 2021 *Silver 30 USD Underway*

January 2, 2021
gold price

A Gold Price Forecast For 2021 *Gold 2200 USD Underway*

January 2, 2021
dow jones

Dow Jones Long Term Chart on 20 Years *10 Must See Charts*

October 26, 2020
dow jones

A Dow Jones Forecast For 2021 *New All Time Highs*

January 2, 2021
lithium mining stocks

Lithium Stocks on Fire In 2021

0

Protected: [Emerging Markets/Gold/Silver] Heads up Template

0

Protected: [SPY] Heads up Template

0

Protected: [GOLD] Buy Alert Template

0
lithium mining stocks

Lithium Stocks on Fire In 2021

January 24, 2021
bitcoin trade

Is This Topping Pattern In Bitcoin Really Concerning?

January 24, 2021
bulls bears

Stocks Ragingly Bullish But Do These Charts Suggest A Better Entry Level Is Underway?

January 24, 2021
attention

‘Watchout Chart’ For February 2021: US Dollar

January 24, 2021

Connect with InvestingHaven

Receive top notch forecasts for free.

*We hate spam as you do.

Categories

  • Premium Services & Login
  • 2021 Forecasts
  • Commodities & Gold
  • Stocks
  • Crypto
  • Mission 2026

Site Navigation

  • RSS Feed
  • About us
  • Sitemap
  • Privacy & Disclaimer
  • Terms of Service
  • Contact Us
Investing
Haven

Top notch forecasting with gold price forecast, many stock predictions, cryptocurrency charts. Many investing tips and crypto market analysis.

Copyright © 2021 Investing Haven

No Result
View All Result
  • Premium Services & Login
  • Premium Investing Service
  • Premium Trading Service
  • Premium Crypto Service
  • 2021 Forecasts
  • Markets & Stocks
  • Commodities & Gold
  • Crypto Markets
  • Mission 2026

Copyright © 2021 Investing Haven

Login to your account below

Forgotten Password?

Fill the forms bellow to register

All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In