Archive for July, 2021


July 24th, 2021 Comments off
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The stock market spiked down on Monday and then rallied strongly the remaining 4 days of the week. I was looking for a trade set-up on Tuesday morning, the market did not present an opportunity to “fade” the trade . This has happened often in the past and it is often wisest to buy during the last half hour of trading instead of letting the futures market change course and ruin your trading plans. I missed a good trading opportunity by trying to be too perfect in a tricky market. In this case, it’s more important to determine a gradual betting strategy than trying to time a “hot and cold” market too closely.

Key underlying short-term timing indicators show the following:


Fear/Greed Index: This popular indicator is in the “Fear” territory with a reading of 32 after being in the “Extreme Fear” zone with a reading of 17 on Monday. So this indicator did flash a clear buy signal of Monday which I saw but didn’t act on.

Note: Friday July 23rd’s, new closing high in the Dow Jone Industrial Average was not confirmed by the Dow Jones Transportation Average. This sets up a classic Dow Theory Sell Signal. Mark this date as a possible intermediate term top.