Stop Being Surprised About Market Volatility

The Week
Struggle. That is the theme of this week with the Market chaos. We had two announcements
this week, PPI and CPI. Both threw wrenches in the trading mechanism causing violent Market
swings. We also saw the 50-day moving average cross below the 100-day moving average.
Bottom line is the Market is getting slammed by the federal reports and the trading herd is
nervous and fearful milling around unable to make up its mind.

In the midst of all this garbage Price/Action, I had an Ah-Ha moment. When I struggle with my
trading, I stop, ask myself the question, “What am I not seeing?” and then just let my mind
wander. It came to me. I was trying to trade this Market like I normally do in a down cycle. Yet
when I stop and look at the charts, they look different than a normal down cycle.
Normally a down cycle travels hard and fast as it plummets. This cycle is not doing that. What I
realized is this Market looks like a normal UP market except it is standing on its head. Look at
this picture. It is our Market but turn upside down. I have to trade it differently.

The SPY Chart Turn Upside Down

Looking Ahead
Accept the chaos. It is here. There is no Fed Meeting in October so we will be spared that
announcement and the ensuing chaos. This coming week I will be treating my trades more like
I do in an up Market EXCEPT upside down. You will want to be in this week’s webinar to garner
all the details.

How do I Do This Week?
A little better results this week – 4% for the week making up for the losses of the prior week. I
am excited by my trading insight and how I am going to adjust to what I am seeing.
“May we live in interesting times.” Boy have we ever – COVID, economy woes, run away
inflation, watching our politicians. Crazy times but interesting!