A Sneak Peek at MultiMarket Money Flow for Fed Week

Dec 11, 2017: 11:49 AM CST

We strongly suspect that the Fed will raise rates at their Wednesday, December 13th meeting.

What’s the picture setting up in our Quad-Market Grid before the announcement?

Money continues – without stopping – to flow INTO the US Stock Market.

At the same time, Gold saw money rapidly flow OUT OF it recently.

The US Dollar Index initially saw bearish money flow but price turned higher with a break above a falling trendline and bullish bounce ahead of the Fed announcement (the Dollar typically benefits from higher interest rates).

Finally, Oil continues its upward bullish drift that developed a sideways trading range beneath $60.00.

We’ll keep you updated on these developments before and after the announcement so stay tuned!

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A Euphoric Rally into Collapse Lesson from Square SQ

Nov 29, 2017: 2:40 PM CST

Here’s one for the lesson books – Square (SQ) had a euphoric or parabolic rally that gave way to the all-but-inevitable snap-back crash straight into a key support price.

Here’s the Euphoric Rise that gave way to the Stellar Collapse:

Square (SQ) is a new stock that you may not have traded yet but it’s sporting a classic pattern of a euphoric (unsustainable) rally that just gave way to a textbook collapse event.

Despite a strong higher timeframe uptrend, price stabilized (intraday chart) at the $32.00 per share level and built a rally toward $38.00 per share.

At that point, a clear Ascending Triangle Pattern developed which triggered a bullish breakout entry above $38.00 on November 10th.

Price got ahead of itself, surging straight up into a “Parabolic Arc” or “Euphoric Top” pattern that set the stage for the pain of a collapse after the pleasure of the euphoria.

Traders are encouraged to avoid trading INTO the late-stage euphoria (bullishly) due to the risk of a price collapse.

Similarly, bears are discouraged from short-selling a euphoric pattern event like this because price can remain overbought and irrational – and surging higher – beyond your ability to sustain a reasonable risk or stop-loss strategy.

VERY aggressive traders can engage short on the breakdown – in this case a gap – beneath the rising “arc” or adaptive trendline.

We’ve achieved our first target of the initial breakout from the original Symmetrical Triangle.

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A Commanding Reversal and Target Update for AutoZone AZO

Nov 29, 2017: 1:45 PM CST

If you enjoy trading trend reversals and surprise bullish rallies (and breakouts), AutoZone (AZO) is the stock for you!

Here’s the V-Spike Reversal from Down to Up and the New Levels to Watch:

AutoZone (AZO) stalled with a Distribution Pattern near $725 with a breakdown (breakout) and Trend Reversal DOWN in April 2017.

From there, price collapsed from the $700 level toward the $500 Round Number pivot.

Rather than build a “Rounded Reversal” or Accumulation Pattern, buyers intervened to create a V-Spike Reversal that catapulted share prices through $600 and now $700.

We’re watching confluence target – now achieved – at the $700 price level.

Use this as your Bull/Bear pivot for short-term trading strategies.

Price initially stalled into the 38.2% Fibonacci Retracement just above $600 and when buyers took price above this pivot, a rapid rush of buying (and short-covering/short-squeeze) sent price speeding toward our current target.

Study this pattern to pinpoint similar/future reversal patterns like this event.

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Bullish Breakouts and Trend Continuity in 2017

Nov 29, 2017: 1:36 PM CST

In the heat of battle, it’s often helpful to raise your perspective to higher ground.

That’s what we’re doing here with the clear price patterns and breakout (bullish) phases in this strong, ongoing bull market in stocks.

Look Closely at the Bullish Breakouts and Resistance Levels:

From the beginning of 2017, the stock market carved a series of higher highs and higher lows, building the structure of a larger uptrend in motion.

I’m highlighting the resistance levels – mainly at 2,400, 2,500, and 2,600 Round Number Levels, and what happened NEXT when price broke ABOVE these levels.

In fact, these green highlights represent the forward progress in 2017.

If you’re surprised by this move, don’t be.  Look at the chart – this pattern keeps repeating.

The purpose of this chart is to highlight prior events similar to what we’re seeing now so we can have a roadmap to the future.

 

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Thanksgiving Two Week Trial Member Special

Nov 23, 2017: 9:58 AM CST

If you’re new to Afraid to Trade or have been wanting to check us out, I wanted to extend an offer to come on in and see what we’re doing!

Here’s your chance to step behind the public blog to a two-week trial of our membership site:

Two Week Trial

I’ll also add a few bonus items for registering and joining us during your visit with us.

Go ahead and register now – I won’t keep this offer on the open blog long.

Take advantage of this special limited opportunity window!

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