Finally! Yesterday we got a big up day in the stock market. As I wrote you Monday morning before the day of selling hell I was hoping for a stock market bounce this week to help people.
But was yesterday the start of a real rally or will it just end up being a one day wonder like the several we have seen in the past few months?
That’s the tough question one faces buying into a market trading like this.
I do think this can carry over into January, much like the bounce we saw in early November. Let me give you the resistance points you need to keep your eyes on
First, you need to know that I didn’t say I was betting on a rally Monday or that I was predicting one. We are still in a serious bear market situation we need to prepare for later in
That means we are not going to see this market rally straight back up to its highs on this move.
But it does mean that we can be happy that it is happening so that people can get some relief from the bear attacks and hopefully some reading this will sell their laggards when it runs out of steam and move that money into things going up more consistently.
Personally, I actually did a buy yesterday. It wasn’t of
Members of my private Power Investor group know exactly what I bought.
Here is a chart of the S&P 500. The resistance points to watch now are the 1/3 and 50% retracement levels of the 2018 top and recent low.
The 1/3 retracement level is roughly at 2556 and the 50% retracement point is in the 2637-2650 zone. That latter level is pretty far away at this point.
This rally will be real for as long as it lasts and then the bear will be back to bring it down. I plan on using it to bet against more junk POS stocks in January. That doesn’t mean I don’t buy things. I bought something yesterday!
Now if you want to buy something on this move I WOULD NOT do blind buying without a plan. Even with yesterday’s big up day most people still feel trapped in the market because they just bought a hot tip or chased something without a good entry point months ago and are now underwater.
If you want to buy I’d look to arm yourself with my Two Fold Formula and apply that trading pattern to the markets for the rest of this year and beyond.
To grab it click here.