Patience is so hard for traders, especially in a FOMO environment like we have right now.

I receive emails each month from people who have lost all their cash and are done with trading. Don’t be one of them!

The S&P 500 has not yet cleared its resistance zone:

We want to see the S&P 500 clear the resistance then retrace and test that zone to see if previous resistance becomes support, and then exceeds the previous high like this (green dotted line):

SPX projected path

If this happens the 200 day MA will be the next major level of resistance we will watch for an upside break. And then when the 200 day MA is broken, we need to have the market pullback and test that 200 day MA again to see if previous resistance become support. Then we would need to break above the 2820 level which has Triple Top resistance and then a retest of that level to see if resistance becomes support. Everything you just read would look like this on the chart of the S&P 500:

S and P 500 forecast path

In other words, so much technical damage has been done to this market since early October 2018 that we have a long way to go before that damage is repaired.

Mainstream Media Fake News Manipulation

The mainstream media was in overdrive today with the Wall Street Journal publishing a story that discussions are underway about a strategy to forego tariffs on China in order to aid in trade negotiations. The Trump Administration quickly denied the story and most of the gains were given back. Check out how this fake news story manipulated the market today:

Wall Street Journal fake news story today about delaying China tariffs

That looks like a flash crash back down. This spike was caused by news trading bots that are programmed to buy on any news headline with a positive comment about trade. The automatic buying sucks in FOMO retail traders who then get caught holding the bag as the market crashes back down.

Chasing markets like this is like jumping on the back of a cow.

man jumping on cow

I totally get why so many retail traders are running out of money and walking away from markets. What chance do retail traders really have with so much fake news coming from the corporate mainstream media.

Don’t play there game. Don’t get sucked in by FOMO emotions and then get your clock-cleaned by fake news from the Wall Street Journal. Instead, play your game. We have our support and resistance levels that we are watching and candlestick patterns too. The greatest power we have as retail traders is that we can go to cash in the blink of an eye and stay there until the cows come home.

woman petting cow on neck