Be Ready to Short !!!
Okay… market down about 2% again yesterday. Like what i said since several weeks ago, just wait a bit for bearish signal confirmation to enter short position. What i want to tell here is i don’t trade based on forecast. One of my friend from LCR ever said that i am a contrarian who didn’t trade based on correct direction. He even despite me for what i written in this blog. Actually i don’t trade based on forecast or prediction. Because from what i learn from several best trader, they all said that “Never trade based on Prediction”. Because prediction is more like weather forecast. If it said tommorow will be rain, there are maybe 70% chance it will be rain and 30% its not. It’s very stupid for us if we do tommorow activity based on this forecast. For example if we have a swim schedule tommorow. Do we have to cancel the plan because of this forecast? It’s stupid if we do that. Same like trading. Just watch market movement, and trade based on that. What a shame is my friend didn’t dare to show me his trading result. And when i offer him a challenge to play the opposite position of me, he didn’t dare. What a shame !!! I hate when people only despite someone, but can’t show and teach the better way. People like this just a coward for me.
Okay…. enough for that. Let’s back to the market analysis.Let’s see market weekly chart first.
It’s clear enough, the market back after touch 61.8% Fibonachi Retracement Level. All indicators showing bearish signal.
Based on Daily Chart, there are a lot of reason to be bearish. First RSI show downtrend, MACD crossing 0 level, chart itself move below SMA 200, 50, 20. The chart also form a Head and Shoulder formation. The bullish perspective on this only stochastic level that already oversold and its current position at 880 support level.
View : Trade only Bear position. So start screening bearish stock. Just follow the trend and you will make money