Taiwan Semiconductor Provides Clear Roadmap of Market Technicals
Often times during countertrend moves, price action can become choppy, overlapping, and difficult to read, let alone trade.
It is important to be continually monitoring charts of individual issues, as well as the major averages, as often times, when one is choppy and "unreadable," the other will give a tell as to where you are, technically speaking, within any particular market cycle.
For example, while the charts of the major averages have become choppy as of late, and FOMO investors exchange financial blows with traders who are looking for the proverbial "top-tick," to get short, I have taken to looking for the omnipresent "tell' stocks.
These are stocks that are typically widely held, large-cap, and very liquid stocks, and as such, present a descent proxy for the overall market.
At this moment, Taiwan Semiconductor (TSM) presents us with a very clear roadmap for where we are.
1) it has completed a very clear 5 wave impulse from the 1998 low
2) Clear alternation between wave 2 and 4
3) A textbook 3 wave counter-trend move of the March 2020 bottom.
When the current counter-trend rally exhausts itself, the market, including TSM will be engulfed in a very strong, and profitable, wave C. There will be virtually no stock that will be unaffected, as correlations converge on 1.0
Keep watching here for updates good trading.
It is important to be continually monitoring charts of individual issues, as well as the major averages, as often times, when one is choppy and "unreadable," the other will give a tell as to where you are, technically speaking, within any particular market cycle.
For example, while the charts of the major averages have become choppy as of late, and FOMO investors exchange financial blows with traders who are looking for the proverbial "top-tick," to get short, I have taken to looking for the omnipresent "tell' stocks.
These are stocks that are typically widely held, large-cap, and very liquid stocks, and as such, present a descent proxy for the overall market.
At this moment, Taiwan Semiconductor (TSM) presents us with a very clear roadmap for where we are.
1) it has completed a very clear 5 wave impulse from the 1998 low
2) Clear alternation between wave 2 and 4
3) A textbook 3 wave counter-trend move of the March 2020 bottom.
When the current counter-trend rally exhausts itself, the market, including TSM will be engulfed in a very strong, and profitable, wave C. There will be virtually no stock that will be unaffected, as correlations converge on 1.0
Keep watching here for updates good trading.