Just look at the current pattern, I mean really look at it – Yesterday everyone, and I mean everyone was bearish AF – you could throw a rock and hit a short, and then the FED came out and SPY skyrockets…Instantly everyone (and when I say “everyone” – I mean “Retail traders”) closes their shorts and immediately goes long, and then with SPY closing on its high, most held those longs overnight.  Then you wake up and get smacked right in the face with a huge drop – with the explanation of – “Investors had time to internalize the FED statement” – Internalize my ass – Institiutions didn’t suddenly wake up this morning and go, “what the hell were we thinking?? That’s not bullish! Short it all!”, no, they know exactly what they are doing.  So what does everyone do? Close those longs! (which accelerates the drop)  As the drop increases, everyone quickly starting shorting again.  The technical analysis teaches you to read, but it doesn’t tell you what you are reading – that part you need to figure out yourself.
Mark As Read