By: Scott Redler
It’s never easy to put a gameplan together, and sometimes it’s even harder to execute it.
Since June 3rd I tried to paint a potential picture of how this month would play out. The market broke it’s uptrend May 4th, around 1180 this was your spot to sell macro longs. We then asked ourselves the question, “Would there be another down move after a tradable bounce?” We went to the chalk board to figure out the best risk-reward scenario’s both long and short.
Patterns repeat themselves because human behavior is very predictable. Technical analysis works because it is a reflection of the irrational emotions of market participants. If you’re in this market in any way, YOU MUST LOOK AT ALL FOUR OF THESE CHARTS AND READ THEM CLOSE. STUDY THEM. THEY WILL HAPPEN AGAIN. These gave you the potential play-by play on how to play the oversold bounce, and then short the rally into resistance, with the potential building of this head and shoulders topping pattern.
The time to be aggressive short has passed but you can still learn a lot and be ready for the next opportunity. The market should reach the 940-970 range in the coming weeks. Market could bounce around a bit here since we are down from 1131 last Monday, almost 100 handles.
I will not buy Macro longs until we get to my target zone 940-970. I will evaluate the landscape and leaders along the way.
