The market has without a doubt stunned the bears, and yet there are many still calling this a bear market. Ok in the mid term that is a valid statement but in the long and short term this is definitely a bull market. So is this simply an 8 second ride? I read somewhere when bitcoin 0.84% was trading at 7800 (or thereabouts) that someone was doubling down on their short positions.
Regardless if you long or short when big moves are made against your position you simply step aside and let the market do its thing. Leave doubling down for blackjack in Vegas. This is exactly how you lose more money. Just put this one in your notebooks. "DO NOT DOUBLE DOWN WHEN THE MARKET IS GOING AGAINST YOU!" It is not about being right or wrong its about money management and this is simply HORRID money management even if it did work out. Keep one more thing in mind, if your long, your risk is defined, if your short, your risk is NOT.
Whether this is the beginning of a bull market or just a good ole bull trap there is no clear answer, but the fact we were off an extreme low, the entire market is moving up, and there is still a huge short interest, I am moving towards this is the first leg of a longer term bullish move. This market reminds me exactly of what happened in 2012 where everyone was calling for lower lows, and the market moved against the shorts many that doubled down, into an already crowded position. Here's your sign!
Though it looks tempting to jump in, every coin I follow is trading near or in a major reversal area. This is the time to be closing long trades, or getting ready to, not opening new ones. There is a higher target area around 8855 and 8986 which is just below the where the market likely has their target range of 9072 to 9269. We surely can go higher, but we are up around 30% from the low, and between two major resistance levels. As tempting as it is... this is still a "No Trade Zone". If I was betting on the market I believe we get a failed top, pullback and then rally towards our target, but honestly we could continue to rally as we wrote about yesterday morning on BCH.
The support zone is found between 7316 and 7748, with a major support level at 7487. This is where we are looking for a trade setup. As long as the 7200 support level is held we have a valid impulse wave and increases the probability that this is the beginning of the longer term 5th wave as we have shown previously on our longer term chart.
If you have been following our metals reports, silver 0.58% is showing signs of breaking to the upside. We will be posting an update later.
Regardless if you long or short when big moves are made against your position you simply step aside and let the market do its thing. Leave doubling down for blackjack in Vegas. This is exactly how you lose more money. Just put this one in your notebooks. "DO NOT DOUBLE DOWN WHEN THE MARKET IS GOING AGAINST YOU!" It is not about being right or wrong its about money management and this is simply HORRID money management even if it did work out. Keep one more thing in mind, if your long, your risk is defined, if your short, your risk is NOT.
Whether this is the beginning of a bull market or just a good ole bull trap there is no clear answer, but the fact we were off an extreme low, the entire market is moving up, and there is still a huge short interest, I am moving towards this is the first leg of a longer term bullish move. This market reminds me exactly of what happened in 2012 where everyone was calling for lower lows, and the market moved against the shorts many that doubled down, into an already crowded position. Here's your sign!
Though it looks tempting to jump in, every coin I follow is trading near or in a major reversal area. This is the time to be closing long trades, or getting ready to, not opening new ones. There is a higher target area around 8855 and 8986 which is just below the where the market likely has their target range of 9072 to 9269. We surely can go higher, but we are up around 30% from the low, and between two major resistance levels. As tempting as it is... this is still a "No Trade Zone". If I was betting on the market I believe we get a failed top, pullback and then rally towards our target, but honestly we could continue to rally as we wrote about yesterday morning on BCH.
The support zone is found between 7316 and 7748, with a major support level at 7487. This is where we are looking for a trade setup. As long as the 7200 support level is held we have a valid impulse wave and increases the probability that this is the beginning of the longer term 5th wave as we have shown previously on our longer term chart.
If you have been following our metals reports, silver 0.58% is showing signs of breaking to the upside. We will be posting an update later.
