I was going to do a market video tonight and point out all the extremes in the market but I decided what was the point. We have some very important news to digest tomorrow and it’s going to completely skew any technical analysis or chart interpretations I may have tonight.

The bottom line is that we’re going to bounce and then go down further, or…we’re going to go down and bounce a little before heading lower. I can say with utmost certainty that one of those two things is going to happen, but they both have the markets going lower as the end result. The important thing is to have your timing right and position yourself accordingly.  I’m being intentionally difficult because if you are still in long positions at this point then you obviously haven’t been listening to my message about being short or in cash since July 15th and it hurts me to see some of you being at the mercy of the markets.

I’m not going to try and time a bounce to get long, and will look to initiate new shorts when we hit the green circle on this chart as long as my primary signal is short.

Now is the time to educate yourself, remain patient and let the opportunities come to you. I’ve included some very important articles and tweets below which contain great information that I think you’ll really enjoy. Bookmark this page and read them when you get the time and even share them with your networks. The end of August is normally a great time to take a break from the markets and do some reading.

Twitter was really where it was at this week in terms of digesting and interpreting information. If you’re not on by now I strongly recommend getting on board and give me a follow.

Trading Education

Phil Pearlman on His Trading Strategy – “…identifying massive trends which are occurring with an expansive time frame.”

Vulnerability – The Defining Trait of Great Entrepreneurs– “After all, fearless creativity, maverick thinking and risk taking seldom show up in the middle of the bell curve.”

Horrible Market Conditions For Position Traders – “Have the courage to do nothing and sit on your hands if market conditions are not right.”

We Fear First and Think Second – “In the ongoing response to risk, emotion and instinct still have the upper hand over cognition and reason.” – why it’s so important to eliminate being fearful in your trading.

Nature by Numbers

 

Tweet Wisdom

Fear takes time to fade, sideways action is the most likely action. Adjusting playbook. @marketmonk
Gotta respect any trader who shorts and stays short. It’s not easy to make a bold call on the downside and stick with it to milk it. @traderstewie
Yield curve is important because it is indicative, not because it is causative. Long rates are an indication NGDP expectation. @fullcarry
Capitulation usually comes after months of negative action… Not the day after initial support is broken. @mercenarymike
Trading is like tetris: your good decisions disappear and your bad ones pile up. @stevenplace
What changes the direction of the market? That is always the question…and often hard to see when you are in the thick of it. @valuepicker
I have yet to see a correction where people didn’t fear a catastrophe, or a rebound where people wished they bought during the correction. @charlesrotblut
When the Dow is up 350 points its a business story, when its down 350 points every news network goes into panic mode. @danielabrams
A good trader can miss a trade & feel bad & still control one’s actions. Other traders will miss a trade, feel bad & r unable to control. @popdoctrader
When we trade like monkeys, we r no different than a PLAYER not the casino. We will eventually lose what we walked in with. @futurestrader71
“Ninety-percent of any great trader is going to be the risk control.” ~ Paul Tudor Jones @jediphone