ES Channel is Back 10/8/2020
ES at the daily view.
Whelp, I told you that "Wolverine" is back. That's the channel that I named. I said NQ's downtrend was broken and we are heading back into an uptrend. I also said that we won't even close a day below 3250 or 3300 any time soon. I get messages from permabears that the markets will crash at any time. Election volatility or some bad headline will crash the market by tomorrow. What they demonstrated is that they only accept data that matches their permabear bias. They ignored every other factor that runs counter to their perma-bias. Out of the 15 factors that I consider, 13 of them are leaning bullish. Now, the same permabears are definitely bagholders. Of course, the permabears would lie to me saying that their trades and accounts are doing fine.
Real traders do not care which direction that they profit from. Real traders know that they should trade based on what the market are now and not what they want it to be.
Here is a very big lesson in trading. There are 4 major factors in trading. By priority order, they are price action, internal market data (liquidity and breadth), market cycles (time), and sentiment (news). If your short positions are relying on the hope of a bad news and NOT on the first 3 factors, then you are already on the wrong side of the trade. Permabears mock hope or "hopium." Ironically, their short positions rely on the hope of some random bad news (also called gambling). You only short when all 3 factors favor shorting - not the other way around. Here's a good example. The President contracted COVID. The first 3 factors turned bullish. The news was bearish. Price action, internal data, and time will always triumph over news.
ES broke out completely. There should be some sort of backtest (small pullback) for the broken resistance (now support). The VIX is near a trend line support. With liquidity rising this fast, that would hold the VIX and VVIX down for a while. VIX is at a crossroads. Either it spikes one more time or enter into a small hibernation.
Whelp, I told you that "Wolverine" is back. That's the channel that I named. I said NQ's downtrend was broken and we are heading back into an uptrend. I also said that we won't even close a day below 3250 or 3300 any time soon. I get messages from permabears that the markets will crash at any time. Election volatility or some bad headline will crash the market by tomorrow. What they demonstrated is that they only accept data that matches their permabear bias. They ignored every other factor that runs counter to their perma-bias. Out of the 15 factors that I consider, 13 of them are leaning bullish. Now, the same permabears are definitely bagholders. Of course, the permabears would lie to me saying that their trades and accounts are doing fine.
Real traders do not care which direction that they profit from. Real traders know that they should trade based on what the market are now and not what they want it to be.
Here is a very big lesson in trading. There are 4 major factors in trading. By priority order, they are price action, internal market data (liquidity and breadth), market cycles (time), and sentiment (news). If your short positions are relying on the hope of a bad news and NOT on the first 3 factors, then you are already on the wrong side of the trade. Permabears mock hope or "hopium." Ironically, their short positions rely on the hope of some random bad news (also called gambling). You only short when all 3 factors favor shorting - not the other way around. Here's a good example. The President contracted COVID. The first 3 factors turned bullish. The news was bearish. Price action, internal data, and time will always triumph over news.
ES broke out completely. There should be some sort of backtest (small pullback) for the broken resistance (now support). The VIX is near a trend line support. With liquidity rising this fast, that would hold the VIX and VVIX down for a while. VIX is at a crossroads. Either it spikes one more time or enter into a small hibernation.
Comment:
And VIX got crushed today. There is still a chance early next week.