That's a good drop.
ES Journal - 2021/2022
- Thread starter Buy1Sell2
- Start date
One of those days where you realize you made a mistake in your analysis. I had gotten concerned about the markets a couple of weeks ago but thought small caps had potentially corrected enough on Wednesday given the bullish seasonality but my weekly charts were on sell mode (which I failed to check). So with the awful breadth, I can't be totally surprised by what is happening. At least have some offset with gold and EUR/AUD.
Last edited:
And the news came from WHO. Not a good source. It is buy the dip time. No way USA going to lock down. And more covid is more stimulus. Lower rates.
Naz the most overvalued of all mkts down very little as people perceive it as a safe haven . We’d have to see weeks of heavy selling to say this super bull of all super bulls is over. The fed loves this . Oil and interest rates tanking . The next words out of Wall Street will be inflation slayed buy stks . Wait haven’t stocks been skying the past 13 yrs ? All news is good for stks .
Good news is bad news and bad news is good news. 
The S&P is headed for one of the best years EVER and for no other reason than money printing, so there's plenty of gravity that could pull this lower regardless of covid.
Best to just stay nimble and trade the swings, IMO.
The S&P is headed for one of the best years EVER and for no other reason than money printing, so there's plenty of gravity that could pull this lower regardless of covid.
Best to just stay nimble and trade the swings, IMO.
Part of the reason NDX may be holding up well relatively is so much of the major components of tech will do fine -- maybe even better -- in a Covid world. Admittedly, I had a little FOMO with taking some long positions on Wednesday and got a little too complacent in my analysis -- just didn't expect a huge down move the day after Thanksgiving with shortened day / lower volume but, again, I take responsibility for that. On the positive side, got out of most of my crypto positions yesterday, got some gold miners and EUR/AUD so I'll be okay. Just reinforces the constant need for discipline and conviction in your own approach / analysis and make sure you're not taking trades because of FOMO. This also reinforces that my approach is really good -- I just need to trust it at all times.
big drop!
I am not sure it is overreacting. In most west European countries at least 70%-80% of the population is vaccinated, yet Covid cases are higher than they have ever been.
The financial impact of the Corona virus will be felt for decades, maybe even worse than the financial crisis in 2008, yet markets are pretending nothing is going on.
The new lockdown in Austria for example costs 1,2 billion euro per week (for the 4th time) and other countries will follow soon.
