Fun times to be a trader. My take on the current market, 6/11/20

Its interesting times to be a trader. Fortunes to be made and fortunes to be lost. But its definitely not for the faint of heart right now. About two days ago some strange things stared to take place. Everyone's plans just turned south and now are wondering what happened and whats next. I also was caught off guard a little but was lucky enough to catch the signals that something was off and was able to manage the situation accordingly. Last night I got to work and found 3 possible routes to the future of our market and began telling people to tread lightly because the highest probability is that we are approaching some choppy waters if not a second dip. I hoped to get this review out late last night to help my friends but had some things come up and just didn't have the time. But I hope this still helps calm some people down and maybe help others form their plans.

I like using the sp500 when I try and evaluate market conditions, its just a personal favorite. So lets take a look. Since we had a hard drop in pre-market open, that eliminated 1 of my 3 possible market projections so removed it from the chart.

The media and doomsday crowd has been screaming for another dip since our retract run started. I don't trade news, matter fact I feel that if you want to use the media as a influence for your trading decision, I would say the best method would be to do the opposite of what they say. This point is easily proved here, this whole run the media has been calling for a crash, once the run broke our precovid line they started selling a bull run and now we are looking at a possible dip. But don't disregard the fact that people have been hearing the media push a second dip all this time, and this could possible influence another fear dip here. At the first sign of gloom people might get shaky and panic and push us into another downward spiral. Domino effect. Its always best to have plan A and a plan B no matter if your a bear or a bull. Not one person on this planet can predict the market at a 100% rate. All we can do is use probability to our advantage, with some help from mathematics find opportunity to take advantage of them.

This is currently my plan A and B. I wouldn't be surprised at all in the event of plan B if the fall happens sooner then i charted.

We are sitting in a interesting spot right now and there will be a lot of bull bear fights about whats about to happen, frankly, if your not a experienced trader, I would recommend to just sit on the sidelines until we have clarity on the situation. Even if your a experience trader, I would exercise all caution and completely stay away from and high risk type trades.

Feel free to leave a comment and tell us what you think or your predication's.

Comment:

Spx is soring tonight. Expect a large jump pretrade