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Thank you to everyone who came out to this past Wednesday’s Summer Trader Social!
It was a fun evening of food and drinks and a great way to wind down the summer.
We also had a chance to give a proper send off to a couple of Meetup regulars who will be heading overseas.
Safe travels Etienne Crete and Dale Miller – we’ll see you next time you’re back in Montreal!
As we discussed in last week’s video, the game plan this week was to balance two opposing perspectives and timeframes.
Going into the beginning of the week, on the short-term timeframes the buyers were in control however the major indices were still trading with full-timeframe alignment to the downside.
In boxing, they say it’s the punch you don’t see coming that knocks you out.
It took until Thursday until sellers were finally started to wrest control back from the buyers.
On Friday while markets were pricing in comments from Powell, Trump threw the punch that no one expected and the markets reeled from that unanticipated tweet breaking the indices significantly lower while filling a number of unfilled gaps putting June’s lows in play.
Even with all the heightened volatility, the major indices still closed as an inside week which now sets up a very potentially volatile scenario in this coming week.
Watch the Weekly Outlook video to see the levels we’ll be watching on Monday.
In this week’s video, we look at the technical outlook for the VXX VX! SPY SPX QQQ IWM DIA EEM TSX TLT GLD BTCUSD TOTAL UKOIL EEM ADBE FAS YNDX MSFT ORCL AXP PYPL WDAY ZEN VMW CAR AAPL RH for the week of August 26 – 30, 2019.
This week Dr. Steenbarger shared a very relevant article about Friday’s sudden reversal.
As I reviewed in the Weekly Market Outlook video this past Friday’s sell-off was notable in its suddenness, aggressiveness, and volatility due to the number of market participants caught wrong-footed. I shared my method of seeing price action that allowed me to see and taking advantage of the change in sentiment.
If you traded on how Friday how content were you with your trading performance. How flexible was your method’s bias? How flexible was your personal mindset? How quickly were you able to adapt?
As Dr. Steenbarger states it,
No one could be expected to predict what happened at that 11 AM hour. Successful trading does not require such prediction.
Rather, it requires an open mind and an understanding of what is happening moment-to-moment in the marketplace.
A valuable feature on many trading platforms is a playback function that allows you to replay market action to see how the day unfolded.
Playing and replaying key market scenarios is a great way to accelerate your pattern recognition abilities, so that you will be sensitive to similar patterns in the future as they emerge. Simply writing in a journal is not sufficient. We need to train the brain for real-time pattern recognition if we are to act in the heat of the moment.