It’s interesting to listen to the talking heads on CNBC day after day. As the market was falling, the Obama administration was in disarray and there was no clarity or confidence being exuded by the administration. Get a 10% bear-market bounce and all of a sudden Obama is Churchill guiding us through the blitz…
The point? Price action plays with your brain chemistry. The best traders filter out all the emotion and noise and focus on the big picture. They do not ignore shifts in sentiment; they are meaningful. They use the shifts to their advantage.
How? By waiting for the real world to take hold once again and wake the crowd from their dream world.
Right now we have a fair percentage of the market sensing that a turn is taking place. In my opinion, this is another false dawn and we will have another slide.
What do you do? Feed the chickens when they’re hungry!
Take advantage of rallies toward 1.3000 to set strategic shorts for a dip back into the familiar range bordered by 1.24/1.25 on the downside. Above 1.32, admit defeat.
