When the superball is dropped from a height, it is going to bounce.
Four important questions to consider.
Where is the floor?
How high will it bounce?
Where do we attack it again?
Should we attack it again, or is going be propelled right through our stops like a bungee cord ?
Yesterday’s plunge is a sign of the times: This market is in trouble. Who knows where and when the eventual bottom will be found.
The globex overnight market is a phantom zone where the bounce can get a magical assist from the insiders.
Staying flexible in our thinking, we can make money going in both directions.
The trick of course, is knowing where the floor is likely to be, so that tools like Fibonacci can be applied.
The secret code gives us those magical turning points, like floors and ceilings.
Buying and selling bungees are leaps of faith, and can be quite profitable when you get it right.
Get it wrong…
Stops outs or wipe outs.