Black Monday Tomorrow?
I sent this email to my list earlier today… thought I would put it up here as well as I think tomorrow could get seriously ugly….
I have been talking a lot recently about the bloat and fundamental flaws I have seen in the stock market’s rally, and now it seems that the baloney express may be coming unhinged.
The market squeezed hard the other day after the whoop-dee-doo GDP numbers came out, then fell apart the following session as trader’s actually read and analyzed where that number came from.
(Gov spending.. Surprise Surprise!)
As we saw from prior scandals, creative accounting can puff up a market in the short term, but in the end the chickens come home to roost…
From a technical standpoint we are in a very scary place…
A look at the monthly chart for the S&P 500 shows a clear double top and a rally to resistance which is now rolling over. If this chart was say an hourly, I would be jumping in with both feet to the short side.
I can’t express strongly enough my discomfort and feelings of doom that have been intensifying as I watched the price action in the stock market last week. The squeezes and bearish traps intra day vanished and were replaced by what looked like steady non panicked selling.
As usual, if the market gets violent, it will not harm me as an investor… Rather, I am looking at ways to profit on the short side from the panic I think is forthcoming.
If we get a big gap down at the open tomorrow it would actually be an interesting LONG for a gap fill. We are quite oversold, and so a snapback would not be a shocker. In fact, I am kinda hoping that we get a sharp rally in the morning that would set up a rally to resistance entry mid session.
I have been so focused on the intra day FX markets of late, it is kind of exciting to see what could be the beginning of a big position trade showing itself in the S&P. So be on the alert tomorrow and let’s see what the market will offer us!
I will also begin scheduling new consulting clients this week, so if you’re serious about your trading, and are willing to do the work it takes to become successful in this job… let me help you define your business.
Unlike most trading mentors who are teaching a specific style or curriculum, I treat my one on one consulting clients as the unique individuals they are. Helping you find yourself as a trader, then matching you to a trading style that fits your personality should be the primary goal of a mentor/student relationship. After all, I can give you five different edges, but if you are unable to execute those trading plans they are of little worth.
So here’s the deal…
I am going to open the phone lines on Wednesday and Thursday afternoon of this week What I need you to do is send me a brief e-mail with a bit of information about who you are, what you’re trading style/strategy is, and where you are in your learning curve. Include a telephone number and what times you can be reached Wed/Thu afternoon….
I will pick up the phone and reach out to the first 20 traders in the order which their emails were received. I’ll give each of the lucky 20 a half session for FREE. ($125 value) We will have a chance to discuss your goals for trading, as well as any issues you may have. At that point, I will have the information I need to tell you pretty clearly what I would focus on if we were to work together in a one on one capacity.
I look forward to speaking with the lucky 20…If you don’t make it, stay tuned and you can try again next time!
Hope to speak with you soon!
Good Luck and Good Trading!
-Bo Yoder
