SPY keep putting on a recurring pattern. They will start the day higher then selloff all day to closing. Then they trade sideways for a bit with relatively little up or down. Then they go down.
Back in the beginning of August right after FOMC when they did this, I commented that I felt the pattern looked bearish. And now time after time the same pattern keeps popping up and proves to be a sign of a coming downtrend. It happened again today.
Isn’t this seasonal? and in a way exaggerated after the credit downgrade??
You know, they say that stock prices are generally weaker in August and September but I really don’t pay attention to that. I did hear about the credit downgrade, and I understand that this is being blamed for some stock weakness too, but I also don’t pay much attention to that either. You see, I do not want to allow any fundamental factors, even if they are correct, to affect my trading. Because what the stocks actually do on the market often goes against all the fundamentals. Fundamentals gives you opinions and when you have a strong opinion, emotions come into play. Opinions and emotions will kill you as a trader.
Well said!! Totally agree…and in fact, having strong opinions and letting emotions run amok will kill any investor or trader…I have been guilty of both!!! And paying the price…