It's been too topsy-turvey for me to trade. We were going up, then got a pullback, then put in a lower high, then put in a lower low and I was then ready for bearish setups...
However, the market has not turned over to put in another lower high. This now makes me think about going bullish. The IWM and DIA have already broken their relative highs from approx 6 weeks ago and the chart above shows the SPY is close to breaking it's relative high - i.e. no more lower highs - i.e. not bearish. QQQQ's (i.e. technology) has been the real laggard.
I believe that we are looking more favorable for going back bullish now. But, the QQQQ's are simply too far down to wait for them to catch up, I could lose out on too many trades waiting for them. So, as long as the SPY, IWM and DIA are all looking bullish, then I'm good with that for entering new trades.
So, I'm now thinking that we have a slight pullback in the SPY, then, once the bulls come in and start driving the market back up, I'll jump back into trades.
The market may also just continue to either go sideways or keep inching up. If that becomes the case, then I'll wait for 2 consecutive closes above the SPY's relative high and then will look to enter bullish trades. I'll want confirmation from the other markets as well, along with a few other items I'll watch. A lot to understand, but things will get clear again.
So, the plan is to wait for now. Yes, waiting sucks, but it's better than losing. And, my past impatience has cost me THOUSANDS. So, I wait and let the confusion give way to an edge...
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