A really big problem too many people have is that they look for chart patterns, instead of using charts as a way to spot/recognize the trading patterns. It is the trading patterns which we should be looking for. Markets are about trade setups, not predictions. What are markets? They are totally about the supply vs demand situation in markets. And it is the trading patterns which manifests in the supply vs demand situation. All of these technical setups which we look for are in reality a way to get at the (esoteric) supply-demand.
So with all of the super stupid comments about the stock market “crash”, I’ve been very busy, focused on short-term trade setups. I’ve been doing much more very short-term option trading, using QQQ, today one winner, one scratch. As to daytrading stocks, none yesterday, but today I sold the overnight CNET position which I discussed in premarket. The charts are below. And I included the AKER trade post. Look at the similarities. The main difference is AKER was a runner, CNET was a classic 123 spring into the gap. I sat for days and waited and watched as it kept closing in on the gap, and a trade setup did show up yesterday into the gap. And the AKER chart from a few days ago is below also. Lastly, there is always a bounce – always: