O ver the past two years I have seen many of my Market Navigator members take on trading as a side hustle, with all the extra time they’ve found with their new hybrid working arrangements.Īs an innovator in this industry, RagingBull has THE BEST platform for getting trade ideas in front of retail traders from every angle, at all hours of the day. Īs one of Inc.’s most TRUSTED educators, I hope you’ll recognize the value in how I help folks like you plan and place trades in a way that fits your lifestyle. If you are ready to make your next side hustle trade, I urge you to come see how I am using my 20+ years as a trader and market educator to position RIGHT NOW. Now, I don’t want to put too much on your plate today by showing you another KEY ratio that I am using RIGHT NOW to gauge the strength of SPY’s trend.īut I will tell you that this indicator is giving me important insights into the strength of the market’s overall risk appetite. Like I said earlier, this is not necessarily a great timing tool for telling traders when to get in and out of the market.īut it is great at telling us when we need to be careful about simply piling into the existing trend, which is STILL higher for SPY. Recently, the MACD study at the bottom of the chart shows us that the momentum behind the recent Call buying has become so extended that traders now need to be on the lookout for a possible pause in the rally. When the ratio is at high extremes, it signals extreme fear as the amount of Put buying FAR EXCEEDS the amount of Call buying, which you can see was the case late last year (see SPY chart in top panel).Īt the other end of the spectrum, when the level of Call buying far exceeds the level of Put buying, it is a sign that greed is becoming extreme. Specifically, it is showing the level of Put buying divided by the level of Call buying. What this chart shows in the middle panel is a 10-day moving average of the Equity Only Put/Call ratio. With this next chart, I am about to let you in on a CRITICAL part of the analytical process that I go through with my Market Navigator members when sentiment is near extremes. Sometimes, however, periods of fear and greed can persist, so I make it a point to teach my Market Navigator members how to decipher between major market reversals and simple pauses. Wall Street’s biggest traders and institutional players love to wait patiently for periods of extreme fear and greed to enter the market so that they can take the other side of the trade against uninformed retail traders ( don’t be one of them! ). Unfortunately, we are starting to see signs that the market may be getting a little too bullish.Īfter 20+ years of teaching folks like you how to trade these crazy markets, trust me when I tell you that THIS is when you need to learn how to sift through the noise of all the talking heads to see if the trend has what it takes to continue. The question now, however, is where does the market go from here?Įver since retail traders showed evidence that they were panic selling late last year, it’s pretty much been a straight line higher for SPY in 2023. It should be going GREAT since I showed you the buying opportunity that SPY was giving you as it dipped down to its rising 20-day moving average the other day.
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