“Breathe; breathe, breathe”.
I gave swim lessons after the market last night to 2 year old Lucy and a few of her sophisticated 3 and 5 year old girlfriends.
Teaching them to become watersafe is my first goal, then on to more elaborate things.
My muscle memory is there; in a few lessons we have made tremendous strides. It’s been 25 years since I gave lessons, still have the touch.
It doesn’t matter how deep the water is beneath us; what does matter is getting our mouth out of water so we can breathe.
Bobbing drills, breath holding under water, jumping in and rising back to the top are what matter. Float. Relax.
Today’s plunge was a similar occurrence. Students of the market know exactly what I mean.
The market held its breath from a lower low plunge, then pushed off the bottom with vigor, gasping to get it’s head above water.
Where do you think the water line is?
Congratulations to Kirstin, who was the only trader courageous enough to answer our poll today about step size and significant key zone.
I told her she was wrong, but thanks anyways, try again.
She responded with confidence, keeping her answer the same.
“Brains and beauty” I replied.
She was right, I was just testing other traders to see if we could sway them.
The bottom line with today’s trade: Not enough info yet.
Longs who think today was a victory are acting like a punch-drunk fighter who claims victory by “hurting his opponent’s fists”. Since the beginning of July, longs stopped punches with their face.
Technical damage has been done to the charts, and we need to see if this is an undercut low or something more meaningful.
Traders who understand scale, fractals, and weak hand / strong hand ideas better understood today’s power play.
The general ran a great webinar after hours today, and was obviously cognizant of that idea.
When a child is learning to swim, we need to help prop them up after that inititial “breath”. They sink back under, and the process of being adept is crossing that water line a few times, with splashes and snorting and swallowing water all at the same time.
The hand of God was evident in in the market today…doing the same thing, propping up the flailing swimmers.
Yesterday’s late day call; today we wanted MATD test.
The half gap and gap play were high odds trades, and no brainers. Even if they didn’t work, it was worth a shot.
When the stops were run short side, we were happy at the 31 test, as evidenced by posts on Twitter.
What I am unwilling to do is buy blindly without an Angel formed in a plunge of this significance.
any day low day we wont buy #EMWS
The hit bounces mode worked for the Angel test, then we warned shorts best be careful of a drive to test the day’s open and the day’s high.
Key Sequence trading posts today
@tradetime99 [08:16] E: we need to hit bounces [10:38] E: 30.75 T2 is hit #EMWS
@tradetime99 we think we had right exit at 31 for short side market trying to stabilize now #EMWS
[10:45] E: so target 31 take profits not too bad an idea [10:54] E: using 44 as resistance then 48 #EMWS
@tradethecycles thinking we need to stabilize first … sharp rallies always characteristic of corrections #EMWS
1452 ticks said better think about this as $taking [13:14] E: assumption is the market wants to trap early longs late shorts today #EMWS
@tradethecycles the hand of God was seen today with the washout low…but we are in secular bear market, so step by step for now #EMWS
DCB finally giving bulls some hope happy for u after july high when we were heading to 1400+ “oops ” #EMWS
[15:06] E: we dont care which way market is moving… give us this range every day and carve something out of it #EMWS
“Breathe, breathe, breathe.”
Mercurial moves in a Kings and Queens setup…