This week we have seen all the markets around the world breakdown and this indicates that there could be some large waves of selling in the near future. Traders and investors are very bullish on both stocks and commodities and financial market is designed to hurt the largest group of investors possible. So with over 53% of trader’s bullish and only 18% bearish (same readings as the Jan high) it makes for a perfect blood bath in the market catching the majority off guard left holding the shares.
Here is a chart of the SP500 ETF – SPY Daily Chart
You can see from simple analysis these repeated patterns in price and volume.
Mid-Week Trading Conclusion:
The broad market is now in the middle of a trend reversal and during times like these we can see wild price swings in stocks and commodities making trading much more difficult. But a few more sessions and we should see things smooth out and provide some great shorting opportunities before the market starts to head back up to make new 2010 highs.
Just click here if you would like to receive
Chris Vermeulen's Newsletter of ETF Trading Signals
Share
Crude oil like many of the other natural resources is becoming closer and closer to running out, this is very dangerous since if we run out of fuel we could end up with a crisis.
ReplyDeleteAgreed for the long term. For the near term we are awash in oil. Never in history have we had 26 miles of tankers waiting to off load. If the economy comes back even a little we are screwed though. We can't afford it.
ReplyDelete