Loading ...Keep the Powder Dry
My strategy is to sit patiently and let this correction play out. I have mentioned I am looking for a 25%+ drawdown over a period of 6-10 weeks or so. Today the index took a turn for the worse with this Island Reversal. This move over the past week is pretty classic. People got bearish and short so the market had to jam the stick in the eye. We had 2 nice little urgency gaps on the upside. Now we get the Island Reversal top.
Holding the core and keeping the powder dry to redeploy.
Oh, and Silver is leading the way down as we would expect.
Agree
Correction might come “fast and furiously” though. $TNX can jump 20% in 3 weeks.
My target too…
Glad I took profits on the bounce. I had a feeling this would be the case. That drop & reversal happened way too quickly to feel like a real correction. I just wasnt necessarily expecting the correction to resume this quickly.
Within this 6-10 week interval the index can do whatever it wants to get there, however the big clue was those 2 running gaps up over the past week. They were well spaced and symmetric. Once the market stalled right below that open gap, I cleaned up the majority of my remaining larger cap liquid longs. Now its time to watch and wait.
Not enough mojo to fill that gap; thus stalled, a warning indeed…