This is the way…
As mentioned in the weekly webinars, we should be expecting a flat period of activity and just like in the Mandalorian, this is the way.
We can see the major averages are all moving sideways due to lack of momentum as the main group of traders who were entering into this market are the reliably consistent latecomers, the dumb money.
So, while we have this period of rest in the market, we should prepare ourselves for the moves up, should they happen but also any big moves down (KYL).
Not wanting to predict what may or may not happen, based on our own studies over the years for circumstances such as this, there is a very good chance we will see higher highs but the follow-through of that will be dependent on what the breakout is like.
A potential for an ATH aside, we will continue to buy into this market but as we want to buy close to support, a breakout and retest or pullback to support are the preferred requirements. Right now, unless prices refrain from this going nowhere fast attitude, we have no choice but to stand aside and wait for some activity involving the big dogs.
So, while the market is flat, take some time off.
Let’s go trade!