Bulls climb the stairs, Bears jumps out of the window
If you're thinking about initiating a short position in next few days, the optimal entry and move have already passed. 'Bulls climb the stairs, Bears jumps out of the window', you can't approach short entries with the same delayed timing as you would when gradually building a long position.
On the flip side, with 20-MA breadth barometer MMTW and the combination of S5TW, NDTW, and R2TW nearing their lowest levels of the year (since April), it's time to focus on building RS long setups to take advantage of potential near-term bounces rather than staying sidelined.
Yes, I sincerely believe you need to be active with building watchlist right now rather than feeling dejected with unrealized profit losses. Don't forget your missed RS opportunities in late April and early August this year when the crowd is staying on the sideline feeling exhausted and dejected. My longest avg (days) winners are largely build from those spots in the market.
Sometimes, achieving extraordinary trading performance requires going against the crowd, uncovering asymmetrical opportunities with the right pricing of risk. Not every trader can proudly say they're at an YTD high in net liquidation equity after yesterday. It's not magic, it's the right thinking and right process in this game to give you longevity.
Oh, and I absolutely love using breadth barometers—they guide me on when to go aggressive in the market.
$.SPX(.SPX)$ $SPDR S&P 500 ETF Trust(SPY)$
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