The DNA of the MarketMARKET Structure
Entrepreneurs have only the murkiest picture of the future in which they are making their bets,
and also there is ambiguity: they don’t know when they push this lever or that lever
that the outcome is going to be what they think it is going to be – there is the law of unanticipated consequences.
Right or Wrong?
This Time its’ Different
Is this a bear market rally, only to falter again and make another new low?
Perhaps, but my work suggests this bounce can run some more.
Follow through will be key, and in my opinion the last week’s lows are the key to moving forward.
Markets fluctuate, and a straight line advance like Friday is probably not in the cards.
The market likes to ebb and flow, creating doubt and getting traders off-sides.
Time will Tell
Making decisions with incomplete information is the name of this business.
The Generals will determine the fate of the market, and clues will emerge as the market discovers support and resistance.
My belief is we have found support at least temporarily.
I have enough self-confidence that I wont delete ths post 🙂
News On the Horizon
Obvious Wild cards in our near future are FOMC and the mid terms. Let’s re-evaluate after we gather more information.
“An educated person is one who has learned that information almost always turns out to be at best incomplete
and very often false, misleading, fictitious, mendacious – just dead wrong.” – Russell Baker
Support and Resistance
My generally accepted wisdom is “Buy Support in an uptrend, sell resistance in a downtrend.”
That doesnt mean blindly do that. We will have up days and down days, but we will look for patterns to emerge.
If we continue to follow market gyrations step by step, we will discover pockets of opportunity daily.
Exploit them as best we can.
Understanding Boy’ds Cycle is a useful antidote to “Paralysis by Analysis”.