How to navigate a bearish trend rather than just worry; Watch MA5 and Lower Bollinger Band!
Why MA5?
- when MA5 has crossed below MA20, it is an indication of a bearish trend
- and when the bearish price action has pushed beyond the lower bollinger band, there are usually some bounce to push it back to MA5
- that did not happen Thursday and Friday
- so I am still expecting green action to move the price action above the bollinger band and to test MA5
- even if it breaks above MA5, it will still need to get above MA20
- so, watch how price action moves next few weeks
- the candles are likely to move tightly with the MA5 hugging closely to the expanding lower bollinger band
- and this will go on until you see MA5 tapers sideways and move closer to the sloping down MA20
My approach
- Short (via selling calls) at every test of MA5 or MA20 as long as bearish trend persists
- Repeat until MA5 can get above MA20
- Will sell puts again when breaking down further towards 420 and 416
Good luck, all!
@melson @LMSunshine @TigerStars @macroB @CaptainTiger @Deposit
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In a bear market, the opposite is often true. Markets often do not stay over bought for very long and as a result bounces can be sold relatively quickly.
As such, I am long the broad market via SCHB, VTI, SCHX and if I owned the SP500 via SPY, IVV or VOO, I would remain long those ETFs as well.
I believe 2024 will be another year that rewards active stock picking over passive index investing strategies
The market does not currently show signs of a major top. I remain bullish until certain criteria are met
this is once in a life time opportunity to buy and go all in, sell your car, house, max out your loans. buy FAANG stock right now.