Price Action Tumbles This Week

THE WEEK

This week was a down week.  The Price Action fell fast and hard.  The Market broke through a former support and on Friday it fell below the 50-day average.  I chuckled when I saw the evaluation of the Market on Friday by IBD.  They called the Market up trending under pressure.  Yet this is what I saw.  The Market had been trending lower and then went into a free fall this past week.

I understand why they called it under pressure as the Market Accumulation Distribution had not changed.  In other words, there had been no major sell offs and the money in the Market was pretty steady.

LOOKING AHEAD

Predicting this week is difficult.  We have been hit with a lot of government economic reports which weren’t bad but the reaction to those reports cause stock prices to plummet.  If you look at the VIX which is measuring traders emotions you can see it is quite chaotic this past week.  There is a lot of fear and apprehension.

Note:  The higher the VIX, the more fear there is in the Market place.  This is an inverse indicator.

Along with the rest of traders, I am feeling cautious.  This is the kind of Market I like to day trade, jumping in and out of trades quickly to catch small profits.  Unless a new trend firms up, I will probably continue to do Quick and Dirty trades.

HOW AM I DOING?

I had a bad week.  I was doing a lot of trade massaging to salvage my positions as the free fall started.  My only gains were from trades I was in and out of quickly.  Ended up the week with a .2% loss.  I am about $1,000 shy of being on track to double my account in the 10-week DATA class.  There are four weeks left to accomplish this feat.  But I am determined to make it happen.

This week’s deep dive will be on doing a SPX trade that expire each trading day.

I name all my trading styles and call this trade FAR OUT.  See you on Thursday’s webinar.