I am not shocked by this pull-back. We were going up on no news, just momentum. I still believe we can move higher, but some traders just don’t feel comfortable buying the top. I am one of these traders. It is nearly impossible you will see me recommending to buy anything when I see that we are above technical levels that are screaming short. I may have to wait a whole day for the market to move my way, but I rather be on the right side of the market. Diminish my risk, and be able to relax.
At 3pm today we had the consumer credit data that shows that we grew $6.46 Billion in June, which is the weakest growth in 8 months, and that form me is something that I can now work with. That confirms what i am seeing.
That is why I keep telling people. Know your levels, they are your guide, and your protection from getting sucked in. Knowing your levels means that you can filter all the noise, and focus on the trades that can really work.
May you all have a good end of your day.
