Two months ago – right into the intermediate top – in the stock market, I did a post recapping why I had turned short-term bearish and was buying puts. And then, yes sure enough, the market had a nice reaction/selloff. I covered my puts into the weakness, as I had begun to see the signs of the next excellent bottom setting up. And then one month ago I did a stock market update, discussing all of this, and why I had turned bullish again – right into the bottom – and had begun getting long again in the indexes.
A recap of that post, original charts in that post, the current update below the recap:
Just focus on – TRADING….TRADING – let the PROCESS unfold (hence the SETUP follows), or not unfold – and DO NOT predict….ever.
“Markets are a PROCESS…PROCESS, so my own analysis is a PROCESS. I become less bearish first, BEFORE I become bullish. I had totally correctly become bearish right at the 2/27 top area in the IWM, discussed here. But in that same post discussing why I been bearish right at the top, I also said that there would be a bottom in the upcoming week starting 3/25. And to “watch for a CHANGE OF CHARACTER in the IWM”. And sure enough, the IWM bottomed FIRST, I covered puts, once again IWM began leading, I noted that to clients on 3/27, chart #1 below, all discussed in the post on 3/28:
“The IWM is (starting to lead). It is showing RS. Positive action. Setting up a VERY GOOD RALLY. Individual stocks are resetting.“
And on 3/28, chart #2, and I gave a specific price:
“IWM starting to lead. Excellent volume at lows. Springs in indexes. CHANGE OF CHARACTER. Indexes PUTTING IN BOTTOMS. It will be a SOLID BOTTOM. IWM will break back above 152.80, and bring the momentum money flowing back in.”
CAN I BE MORE CLEAR SUCCINCT SPECIFIC, than those words.
And what did I NOT..NOT say? I DID NOT say it – MAY COULD SHOULD POSSIBLY – like all the other total frauds and morons who infest this business like leeches, sucking off of everyone. I said it will break back above 152.80 and bring the momentum crowd back in. Beautiful work.
And then right into the retest lows, what did I say on chart #3?
“Nice pullback, getting ready to “jump the creek“. Do you know what that means? Then learn it.
In this video recap I discussed why I was beginning to take profits on my TNA long position – in my small margin account, then I sold the other 1/2 into the further rally as I was seeing very few setups and the IWM was lagging once again. Yes the IWM had another reaction, then I began seeing the stock setups showing up again, back into support, and I believed we were setting up for a spring, and it was time to re-enter, TNA, other people used call options, I wanted to focus on trading the volatile individual stocks. And we have had a nice rally, closing back into res, SPY back into res, some big market moving stock earnings coming out this week, like TWTR today, has had a nice accum area, I entered with my VERY SPECIFIC LL bko setup in pm trading and sold 1/2 into the rally, I have discussed numerous times why the only time I will daytrade the bigger type high float (above 500M) stocks is on earnings day bkos and buying them in pm trading (need the extra edge), also AMZN MSFT FB, and then next week with GOOGL AAPL, plenty of trading opportunities this week and next, also closing back into May, a time-frame for another, possibly bigger, top in the stock market. Index charts below:
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