The market has now pulled back two days in a row and is slightly oversold.
Ideally it will see 2-3 days of additional movement to the downside, especially a cumulative large move. There’s too much “complacent money” trading/investing today and it’s healthier longer-term to flush this money out with a sharp significant decline.
Should this occur, we’ll be there accumulating long exposure as we just started to on yesterdays close.
Making You a Better Trader
To improve, you must continuously learn…
Ernie Chan is one of my favorite researchers and I always enjoy reading his work. I just completed his new book “Algorithmic Trading: Winning Strategies and Their Rationale” and highly recommend it. I immediately came up with strategy ideas which we are now testing and anyone reading this book will be able to do the same.