I have had a few ask, “what is going happen next?” “Is this the bottom?” Is Monday going to go up?” The easy answer is the only answer, I have no idea. No one can predict the future but you can read what is happening as it is happening. I have heard people say that if it hits this I’m all in. The problem with that is your point of entry might not coincide with what the big players on the market think is low enough. My point to this person is why not wait and try to stack the odds in your favor. Wait for at least a Pivot Low to be established before you enter and then at least you know it might be a possible bottom. But even this is not a cure all, but it helps stack the odds.
What is a pivot low? The closing price of the following day, must be higher then highest price of the proceeding day. Plus, Lowest price of the proceeding day must be lower than the day that proceed it, and the following day. What?????? Let me show you a picture and then it will make more sense.
There is no reason in the world to try a pick a spot to enter the market when the market will show you. At the least, you should wait for a pivot low to stack the odds that the market might reverse. Even with a pivot low, there is no guarantee. But it is at least better than just picking a spot on the chart. We really like to see at a pivot low and then another pivot created that is higher than the first. That is really stacking the deck in your favor. So what it boils down to is at least give yourself a fighting chance because this stuff is hard. Look at the chart below for the notes and what we need to see for the minimal signal.
Unless something changes overnight, we should have a very nice up open. Maybe as many as 25 points up on the S&P500 which is close to 2%. Happy hunting.
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