Markets continue to do what they do best and that is fool most people most of the time.
Tuesday’s AM rally quickly fizzled out and turned into a rout in the afternoon. Can you spot the inside bar reversal on the 4H chart?
This morning we gapped up only to give back all of those gains. Can you spot the inside bar reversal?
Now we’re setting up for a gap down tomorrow on Trump’s plan to tariff Mexico and you can expect that anyone who got long today will be on the pain-train.
Spot the pattern?
Fool me once, shame on you; Fool me twice, shame on me.
If you’ve been following the Weekly Market Outlook videos then you know that I’ve been expounding that we now are trading full time-frame alignment to the downside and that this is the environment to be staying on the short side.
I know knowing something and actually doing that thing can sometimes be at odds.
Just remember that under these market conditions usually, the surprises, especially the nasty ones come to the downside.
Here’s a final chart for good measure.
VXX set to go inside bar reversal to the upside on the weekly timescale.