In today’s market environment, it isn’t the one who “has the money” that controls the market direction. Instead, it has changed to the one that “controls the information,” controls the direction of the markets.
Instead of reading an article to see whether it could be bullish or bearish for the markets, we have created computers that do the reading and then trading for us.
When these algorithms read something that they are programmed to be deemed bearish, they automatically remove any bid and sell the futures. Which ends up being a domino effect, as stops get wiped out, which then causes more selling.
So our markets have now become the ones that control the news, and the short term direction. The best way to manage your portfolio or make trades during a warp speed environment is to stand back and let the euphoria/panic dust settle. Then look at where we are as far as support resistance-and then look at the rate of change.
If the rate of change is slowing and you start to see some buying (if the markets are dropping) then one can start to look at their regular indicators and support resistance to decide whether or not you want to buy/sell. But until the euphoria/panic stops, trying to guess a bottom or top, will have you losing your money at warp speed.
Watch for clues that the warp speed phase is ending —that is best done by watching the rate of change. And make sure what you are trading has stopped moving up/down before making a trade. Learn what I look for before making a trade in a fast moving market.
