Hubert Senters here.
Let’s take a look at the Dow this sell-off acts like it’s a little bit more real than the previous ones. Not that the previous ones were not real. I love how people like ‘’the sell-off was not real.’’ Hold on. What’s your definition of real prices actually went lower it’s still a real sell-off.
Now, do you mean it might be a head fake like it might sell-off today and then run up a thousand points tomorrow? That’s something totally different. When you’re looking at a massive move like we’ve had lately so let’s go to a weekly chart and you can see nice little massive uptrend.
But notice that the sell-offs are a little bit more violent. They’ve got a little bit more to them. And this is very common if you haven’t traded for very long. You could have this take however many years we could wipe this out in three months, six months. Very easy on the downside.
The fear gets a little bit out of control on the sell-off sometimes but it’s a good thing if you’re in the trading volatility because it’s good because the wider that ranges the potentially then more amount of money that you can make.
This one out here looks a little bit like it’s got a few more legs. So you can see we ran, we had a nice little sell-off. We didn’t close below the standard line here. We did close below the turning line here and now we’ve just been touching it again. And then today we went back through it.
So, obviously our next support is going to be around $23,000 here on the Dow. Looks like it’s going to get through it. Now, it probably won’t do it by tomorrow unless something really drastic happens but we’ll probably get through it by next week.
And then if we break that $23,000 then we’re probably going to fall all the way to the top of the cloud on the weekly chart. Now, on the daily chart already you might as well be short on this. Now, you’re back below here. So you’ve got one, two, three, four closes below the cloud.
So we could focus on the short side Intraday, you can trade whichever side you want, long or short today obviously it should have been short because most of the system just a nice little sell off was not that hard to figure out. So this one here looks like it’s got more legs associated to it than did this one did. And they’re about equal in size. So be on the lookout for continued moves to the downside with some nice little volatility in momentum.
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Good luck. Hope it helps and I’ll see you on the next video.
Hubert.
