Is The Rally Over Or Is The Market Just Taking A Breather?
ETF Trade Watch
The market’s market current rally has seemed to have taken a bit of a breather before going higher, or possibly rolling back over. However, until we have confirmation of a full reversal, for now, we will just play what the market puts in front of us and look for trades that have higher probability.
Oftentimes, whenever there is a sizable rally in the market or a sector, you can plan to see a slight pullback, or a retest of a former resistance level that has now become support. These will be key to find in our trading as we can play the retest with a reasonably high probability that we will go lower before breaking higher once more.
If we are wrong, then our risk management will save us from being beaten up too much from our trade. Not every trade is a winner, but if we have proper risk management, our risk is defined before the trade is ever made.
Check out the video below to get a sense of where the market is and where it could be headed!
If you want to join my students and I as we learn how to look at sector ETFS for our trades then you’ll want to become a member of my Smart Trades options trading service. Not only will you get all my trades, but you’ll also be a part of a growing community of like-minded traders looking to learn and hone their options trading skills.
Learn to find support and resistance levels like we have done in this video in order to find trades based on your own ideas. You’ll learn how to look at a price chart like in the video above and after a while will be able to pick out the most significant price levels yourself so you can better map out your trades, join today!
I look forward to trading with you, but until then, as always…