Hi Marty, I must say I’m finding this market so difficult. It’s mentally draining! Ha ha are you and other subscribers finding the same thing?
what advice do you have? Walk away for a bit? I’m just getting chopped up!
Yes! The market is frustrating, and maintaining mental capital is important. Many subscribers are experienced and know this is not a market for them right now. They will not participate until the market is providing tailwinds and not headwinds.
If you are trying to trade on the long side in this market it will give you instant feedback. Every time stocks show strength they are met with bouts of selling.
I just concluded a video showing how strength is being sold on the five minute chart. That video will be included in tonight's update.
The market is not going to give us a sustained rally. Therefore, you must know this before any entries. If we are up 2%-5% on any stock then we must take profits. This is a market to try and hit some singles and not home runs.
We can easily see the selling into the close every day using the five minute charts. Monday was the exception as the markets made an incredible rally off the lows.
When the markets gap up or down every day 1%-3% we know this is not a healthy market for the longs. We like calm markets that trade in tight ranges. These wide and loose days of volatility are the enemy to the bulls.
We can see the institutions selling into strength one these five minute charts. It does not matter the sector or industry group. They are all under distribution.
Those who are trying to go short at the close wake up to a 2% gap higher in the morning. That is not a good feeling.
In 2020 I did not make on trade between February 20 and April 6 because of the markets headwinds. That is the "sit out" discipline needed in this market.
Preserve your mental capital and step away from the markets for a little bit. I think you will find it helpful.