Hey Market Pilots,
The Market has been a little challenging as of late and the ability to get chopped up or on the wrong side of it is a real possibility. Even I got caught up in the mess. While it was an uncomfortable position to be in, there were numerous learning opportunities I was able to pass along to my subscribers.
So what did I learn?
Admittedly, I did get caught up in the initial bounce off the lows, starting about 9/25/20. But since that event and movement, I then knew what to expect from the market because it came into a formation I was familiar with.
The SPY moved up into the underside of the Daily 21 EMA, which I typically refer to as the “arch of the foot”. This also coincided with price running right into the underside of the Hourly 200 SMA. At this point, I expect price to fade down a bit and re-test some lower areas. We are never quite sure where those lows will be, but I will be looking for them and will be able to see when price decides to turn up from the pull back.
At this point, we wait for the market to do its thing and rest a bit. This should pull other names into better positions and opportunities for us to go long (assuming the market holds the pullback). When you make mistakes, you must learn from them otherwise the cost was worth nothing and you are likely to do it again. Then you let the market get into a setup you are more familiar with and pick up where you left off. Get back into the game and work on the trades you know best.
P.S. If you didn’t catch my webinar on Tuesday, watch the replay here!
Over and Out,
Your Profit Pilot
