Stocks ready to bust a move despite yesterday’s freak-out.
That was a fast, hard, sell-off that came out of nowhere yesterday and looked like it was going to really bring down the market in a big way until the Senate announced that they were going to do their job and actually work and not take the August recess for at least two weeks.
Yup, that little bit of news brought back the entire market from the brink of a nasty sell-off.
What is even more interesting though, is that it happened right at the 50-day moving average. That level of support has not been exact, but the area around the 50-day moving average has resulted in bounces every time over the past two months that it has been tested.
In the premarket, we are now more inclined to think “new all-time highs” rather than any kind of significant pullback, because the market is rocking it this morning, like nobody’s business.
As I’m always preaching take whatever it is the market is providing you with, and run with it. Don’t force your will on the market. Would it make more sense for the market to be selling off? Absolutely! Is that what it is doing? NOPE!
So don’t force the issue. Follow the market in the direction it wants to take you. You’ll stay profitable that way.
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