In my 20 years of trading, Ive personal never seen the MACD on a weekly chart so high. Can anyone pull up more data and post it
There is also an additional problem imo. These negative guys not only use the wrong TA tools, they lack the correct tools to read a market. Their TA tools could be things like RSI and MA's etc which are just pure misleading and applied incorrectly. The correct tools they have never explored due to fixation / unbending in the head department. However imo, misguided players are required, that's the brutality of trading. Helping strangers on the internet can only go so far.
Ha ha ha. that can only be good for the market. Way better then major political violence would be North Korea hitting Los Angeles with a thermonuclear blast. That might send the markets out of the solar system. Well OK, at least as far as Uranus. I mean look at what a few race riots, tear gas, a pandemic, 180K dead, thousands of businesses shut down and massive unemployment has already accomplished, and you realize thermonuclear is the way to go... to really goose this thing.
Well, traders also place too much stock in the obvious and they refuse to believe what they see. Support and Resistance levels, Fibos, Pivots are usually faded by newbs and that is a mistake. Somehow they have it in their mind that something like Support is a tangible barrier and they will buy in front of it. Big Specs will push those levels because they know that's where all the retail orders are at - on the floor they called it "running the stops" and big locals did it all the time. Let me give you an example. Let's say there is Daily R1 at 3589 in the ES. Big Specs will push that past 3595 sure as sugar - reason being, resting stop-buy orders will congregated around that level to cover short positions. For a big Spec it's like a very cheap call option. They'll buy up to 3595 and have sell orders at 3599,3600, that type of thing. If it's a prominent support or resistance level it's going to be used by big specs and algos to shake out retail pikers. Free money. So you have small scalpers who sold in front of R1 puking and you have resting stop-buy orders activated because retail shorts put their stop limit orders in very obvious places - that's rocket fuel for a push to the upside. And of course the other thing is what I've been harping on quite a bit (refusing to believe what you see), that the market goes up but idiots insist that the market is overpriced and so they sell into a strong relentless bid. Offers trade out relentlessly, higher highs and higher lows, three or four up days for every down day - that kind of stuff where doing the obvious is somehow wrong. And of course many of these retail wanks are one-trick ponies. They will sit around for days looking for a place to sell in a market that rallies day after day after day. One trick ponies. Fighting to take out a tic or two. Meanwhile, one amazing person out of a hundred will say: gosh, the offer has traded out twice in the past ten seconds I'd better step out and buy a one lot. And that simpler but amazing person sits on his one lot as long as offers trade out, and when a bid trades out he hits the next bid. So now he's up twelve tics on one trade but he's just going along with what he sees instead of what he thinks and so that happy simple trader will have a nice career as long as he doesn't argue with the market. In his ignorant bliss he can make thousands of dollars each day without necessarily having this macro market wizard let me talk on squawk box thirty thousand foot overview.
Its literally a vertical climb.....we all know how this will end, but no one is saying anything, they are banking unimaginable profits and thinking the vertical trajectory will last forever. It cant it and will not....
nice post. One of the first things for anyone to learn is that the markets are irrational, much, if not most, of the time.
Or, alternatively, that the market could care less about your opinion. People have a thousand ways to sabotage themselves.
So is this a buying opportunity before jobs numbers tomorrow. Will tomorrows numbers be a surprise to the downside. Watch for dip buyers. Also remember contract rollover this month.