A Pullback at Last!

I have been waiting patiently for a month on this happening. I last had a trade on the 9th of April and had to wait for this latest topping out process. It was inevitable that the trend up that began at the end of 2018 would falter at some point and soon. Nothing goes straight up forever, and certainly not the market indexes.

This was not a discretionary call, I have a fully automated reason built into the algorithm for stopping trading, having taken so much out of the trend up already. But I won’t go into the details of what they are in this blogpost, as it would be war and peace! HA!

As you can see from the picture, the bottom oscillator is a very good indication that we are now getting oversold. That’s not to say it cannot go a lot lower, but whenever this indicator hits the zero mark as it is doing right now. The first day that the market stabilizes and doesn’t try to bounce too much, indicates that it is likely a short term bottom and a great entry for a new swing higher.

It’s not a 100% predictor, nothing is, but it’s probability is close to 90%, and that’s obviously pretty good historically. So, let’s see if there is a bounce or a further fall. My hope is that the bottom is near and a spring back is coming, with me in tow.

Good trading,