There are more important things to look at and focus on rather than all those headline news, pessimistic news optimistic news out there, right? It’s because if you just take a look at a broad market trend using a SMP 500 as a proxy, do you guys see that this is a really, really clear longterm uptrend support that has bounced of many times? And it’s nowhere near to breaking this yet.
So what’s that worry about recession? What’s that worry about economic downturn? What’s that worry about your US stock crushing when these longterm uptrend, which has bounced off many times before, which means this is a very, very important uptrend support, is doing that?
Get my point? Okay. So what was the other pessimistic news that the U-curve thing, the recession thing that’s coming in, when it is still hovering at a high level, that’s way still higher than its longterm major uptrend.
So bottom line is this, rather than let yourself get affected by all the news out there, just focus on the main thing. Okay, is the market selling off or not?
The next time the price comes to this level, that is where you got to be really, really careful and monitor carefully because the next time it comes back to here and if it breaks below and very sharply that is much more important than all those news that you are hearing out there, because that point of breaking down is where the market is telling you that I’m giving up on this SMP 500, which is the broad US market already. And that is the time that you should be taking real action to try to take your risk off the table instead.
Interested to receive mentorship opportunities like this with Philip?
Find out more at traderwave.com/tv
- The True Nature About Trading The Financial Markets - August 4, 2020
- Are Fake Breakouts and Reversals Really Fake? - August 1, 2020
- Technical Analysis Is Used To Study Probability And Not Certainty - July 30, 2020