I am excited about being a part of this new endeavor to help newer and novice traders – as well as some professionals – overcome fears, hesitations, and anxieties concerning trading. I hope this will be a long and rewarding journey for all of us as we seek to increase confidence, awareness, and profitability in the world of market speculation.
Here is a sample chart I have for us:
Although odds favor a retest of support here at the 20 period moving average (as well as the RSI reading of 50 – midpoint), it doesn’t take much to see that the MACD is diverging with price action and should be a ‘flashing light’ for us. Remember that odds favor continuation after a trend is established so it would be countertrend to enter a new short position at this level, but one also has to wonder how much further can the Dow (above) continue without even a slightly meaningful correction. As TraderMike pointed out, the Nasdaq market is ripe for a correction (probably at least back to the moving average) and so with conflicting signals, caution is warranted right now.