So far this week has gone as anticipated. Start off lower and take out last week’s low, which has happened. My hypothesis was and still sorta is we should now see a rally attempt into the end of the week. I say “sorta” because we have bonds getting thrown overboard, perhaps the Chinese selling heavily. As well the ongoing political upheaval. Is it worth trying to trade in this slop? Well, I am not going to venture there. In these instances I just try to be patient.
The market doesn’t pay us to trade. I try to look at it like the market has to MAKE me trade by presenting a set up I like or I will just stand aside. If we can alleviate a little of this oversold condition by chopping higher into Friday, then I will possibly consider a short. It depends on how the market trades, and if anything sets up. The bears are in control, but that doesn’t mean it is okay to just chase anything on the short side. The bear control is also why I am not venturing to try to trade a counter trend rally. Hope that makes sense!