Today is Sunday, February 28th and this post is for Fridays market.
The market on Friday, I believe is marking a little time. There is a good chance that we will see the rally that I had talked about last week. We saw an inside day, from Wednesdays market, followed by the sell off I was looking for, but came up about 6 points short of reaching the target. The next part of that was the reversal I called for, and it did come, closing at the highs of the day, I am sure a complete surprise for many. That happened on Thursday and Friday we just saw some base building and ended the session up slightly near the highs of the day. Monday will have to be the day to rally if in fact it does. To me that is the on time day.
The market sentiment numbers came this week with some changes. On Tuesday, the new numbers came out after a large market drop and thought it might have an influence. It didn’t, in-fact, it went the other way with bullishness increasing by over 6 to around 42% and change.
I believe there is still room for a rally here, but it will probably be contained. The market is in a key spot right here. The volume and volatility is going to pick up for sure. I can see it in the daily charts. Be on the look out, I think we will see a trending day up, but anything can happen. The market is in tipping point position, a move big one way or another, which ever way it breaks, you will see high volume and a little conviction behind it. Well, that is what I see. Always keep an open mind and don’t hold onto any market direction opinion so strongly that it blinds your decision making ability to read the price action. I mention it, because it happens all the time to traders.
Trade what you see, not what you think. That will keep you out of trouble to some extent. One more thing, if we get a trending day, try and trade in the direction of the trend as best you can. Trying to go against a strong trending day, can wreck havoc with your account equity.
Find what you feel are safe entry area’s and enter as the trend continues. Playing a choppy market or trending market is different and you need to ready for both.
Fridays trades below, daily goal met. It is not perfect, but trading is not about being perfect, but doing enough right things to get your points for the day.
Good Trading to all.
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- Market Sentiment as a Trading Indicator
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Tags: choppy market, daily goal, market sentiment, Price Action, reversal, sell off, trending market
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