The indices staged a sizable recovery this week, headlined by a very large up day on Tuesday and
respectable gains in three of the other four sessions. This recovery essentially recaptures the points
that were lost in last week’s session, so I guess the past two weeks were a wash, right? Wrong. The big
statement was made last week. All this week’s action did was confirm on Tuesday that a larger upward
correction was playing out. But all that does is delay a clear setup for additional weakness in the near
future, and all we can do is trust it. I’ve said that a lot lately because it’s been a tough market to trust,
not only because of the violent pace of things, but also because the wave pattern has been open to
interpretation more than usual. Those are fair reasons, but that’s also the way to talk yourself into
paralysis. That’s why, as I said, all we can do is trust it. If we have blatantly impulsive downside
movement and corrective upside movement, we have to be bearish until something occurs that
indicates otherwise. That’s what unemotional, objective trading is all about, and that’s what has bore
some significant fruit for us over the past decade. It’s not always right, but it normally is and that’s
why they call it a probability.
respectable gains in three of the other four sessions. This recovery essentially recaptures the points
that were lost in last week’s session, so I guess the past two weeks were a wash, right? Wrong. The big
statement was made last week. All this week’s action did was confirm on Tuesday that a larger upward
correction was playing out. But all that does is delay a clear setup for additional weakness in the near
future, and all we can do is trust it. I’ve said that a lot lately because it’s been a tough market to trust,
not only because of the violent pace of things, but also because the wave pattern has been open to
interpretation more than usual. Those are fair reasons, but that’s also the way to talk yourself into
paralysis. That’s why, as I said, all we can do is trust it. If we have blatantly impulsive downside
movement and corrective upside movement, we have to be bearish until something occurs that
indicates otherwise. That’s what unemotional, objective trading is all about, and that’s what has bore
some significant fruit for us over the past decade. It’s not always right, but it normally is and that’s
why they call it a probability.
