This market, as much as it has consistently moved higher by 2 points here, and 3 points there, has managed to put traders and investors alike, to sleep.
Traders these days, conveniently turn on their computer and expect the market to be either 1-2 points higher or 1-2 points lower. If it is the latter, the assumption is always that the dip will get bought up within the first hour of trading.
Simply put, risk has fallen by the wayside. It’s a total snooze-fest out there!
But that is exactly what will put traders in danger, because when they don’t take risk serious, is the precise time when downside risk tends to rear its ugly head. I can tell you too, that most traders will be oblivious to it until it is almost too late to do something about it. When the sell-off does eventually come, traders will not take it seriously. They will assume the dip will get bought up, but when that is not the case, they will find themselves stuck in positions that they cannot soon liquidate without taking on a major loss.
So even though this market is very quiet, volatility is in the sewer, and everyone is focused on how much this market continues to go up, you should stay fixated on the risk. That’ll insure you get out when the time is right, and to be ready to profit to the short side.
And to help you get ready for that, I have put together my list of bearish short setups that you can follow throughout this week. I’m not saying we will sell-off this week, but it is always the right thing to be prepared in case it does, and that is exactly what this watch list seeks to do.
So check out the short setups and see which ones work for you!
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