www.AlexanderTrading.com

Special Stock Market Update_2022_09_12

Facebook  Twitter  Youtube  

There seem to be a lot of people thinking that a bear market is this nice, neat, clean crash that pretty much dives straight down allowing traders graceful and obvious entries along the way. 


That's not the way it works. As vertical as was the 2020 "crash" there were violent, albeit short-lived rallies all the way down. That was the most vertical downside move in the shortest period of time in US stock market history. It was atypical.


Far more typical for bear markets are the 2000-2003 and 2007-2009 bear markets. Below are charts of both. 


Takeaways:


  • Retracements were many
  • Retracements were quite vertical and substantial
  • Retracements ended suddenly and sharply
  • It was critical to watch levels - there were many 2-5 day Balance Areas that formed during downtrends offering defined risk for short entries

The rally off the June low, so far, is nothing out of the ordinary for bear market rallies. I don't know where it may stop, but I did caution about the "elevator shaft" created by the 8/26 wide range down day in last weekend's Report.


Another day or two of upside ramp will put the technical situation at a short-term extreme, so time-wise I suspect we may be nearing another top.

Live Trade Room

I offer a monthly membership that includes a daily Live Trade Room. It is a unique approach to the live trading environment than typically offered in the retail trading space.

The orientation is to highlight in real time an effective approach to analyzing and trading the markets in the intraday timeframe. The focus is on 1) identifying the type of day underway (trend or balance) and 2) identifying the most high-expectancy way to trade based on real time assessment.

This is all accomplished by using Auction Market Principles and the immutable develop process that all Auction Markets follow, and not using oscillators, magic numbers, order flow, delta or any of the other popular things traders use.

No special software, trading platform or indicators are used or are necessary.

97.00/mth. Cancel anytime. Sign up here.

Details on the above as well as many other contracts, including Best Opportunities are sent each morning before 8 AM, EST to Members. Also, the new Alexander Trading Community Forum is up and active!
U.S. Government Required Disclaimer (Required by the Commodity Futures Trading Commission)

Futures and options trading has large potential rewards, but also large potential risk. You must be aware of the risks and be willing to accept them in order to invest in the futures and options markets. Don’t trade with money you can’t afford to lose. This website and the products, services and other information contained herein is neither a solicitation nor an offer to Buy/Sell futures or options. No representation is being made that any account will or is likely to achieve profits or losses similar to those discussed on this website. The past performance of any trading system or methodology is not necessarily indicative of future results.

Trading Involves Risk

Use of any of this information is entirely at your own risk, for which Alexander Trading will not be liable. neither we nor any third parties provide any warranty or guarantee as to the accuracy, timeliness, performance, completeness or suitability of the information and content found or offered in the material for any particular purpose. You acknowledge that such information and materials may contain inaccuracies or errors and we expressly exclude liability for any such inaccuracies or errors to the fullest extent permitted by law. All information exists for nor other than entertainment and general educational purposes.

CFTC RULE 4.41.(b)(1)(i)

Hypothetical or simulated performance results have certain limitations. Unlike an actual performance record, simulated results do not represent actual trading. Also, because these trades have not actually been executed, these results may have under-or over-compensated for the impact, if any, of certain market factors, such as lack of liquidity. Simulated or hypothetical trading programs in general are also subject to the fact that they are designed with the benefit of hindsight. No representation is being made that any account will or is likely to achieve profits or losses similar to these being shown.