Here’s why I’m hoping for markets to go down Monday…
The market repeats itself.
That’s something that you need to drill into your head.
The movement of the stock market has been told time and time again.
And now that there are algorithms at the helm dictating where it goes, we get an even better idea of exactly how stocks will move on the day.
As a day trader, however, I don’t care where the market goes in a month, a week, or even the next day.
I stay liquid and roll with the punches.
The big difference between what I do and what everyone else does is that others try and predict the market, while I react to what it’s saying.
The VWAP acts as my indicator, and if a stock breaks it either way in a meaningful manner, it’s like that it will continue to push in that same direction.
Today we had one of the best days of the market in a long time.
Big tech broke VWAP across the board with possible plays in TSLA, QQQ, MSFT, AAPL — if it was breaking VWAP, you had a chance to get in and get out for some insane profits. Even energy stocks were giving profits to those quick enough with the trigger.
That was today. I’m packing things up, taking my profits and leaving.
And I’m looking to what’s going to happen Monday.
Historically, if this actually is the end of the bear market, then after a good day like this, traders are going to try and gap the markets down on Monday.
That’s where you lick your lips and wait patiently.
You don’t buy and hold over the weekend — that’s foolish.
You have no idea what’s going to happen this weekend. The whole market could blow up with you losing half of your money.
Don’t hold. Be patient.
If the markets gap down on Monday, you want to wait for the bounce back up.
So when if a stock is gapped down, and then it’s rallying back up and breaking VWAP.
You buy it, you sell into the move up, set your stops and you cash out for profits.
It’s that simple.
I’ll see you then.
October 28 2022