We are in a downward trend

The market (DOW) has been down over the longer run since Jan 2, 22 according to the weekly DOW chart. The monthly broke the 20-moving average on 5/1/22. How this market acts over the next several days will be interesting and will tell if we will remain in a recession. My downward long-term trend has NOT been broken. What concerns me most is the DOW on the monthly chart going below the 20-moving average. This GENERALLY is not a good sign.

I agree. We are likely at the beginning of a bear market.

Yea, the next several days will be key in seeing which direction we choose. The support on GW's monthly 21sma is there at the moment. Time will tell

I sure hope so so. I just got in a PUT trade earlier this morning. Hehehe....



Edited 1 time(s). Last edit at 05/04/2022 01:49PM by RichieRick.

Once again... it sucks to be me. Apparently I choose the worst day ever to buy puts. Oh well.



Edited 1 time(s). Last edit at 05/04/2022 02:39PM by RichieRick.

You saw something in advance of this huge sell off. Go back and re-look at what you saw. I don't know what chart you used for entry. I usually watch the 8, 21,34 and 55 now. If you used a larger chart compare what you saw to a smaller chart like a 5,8 or 13. I did this often before I finally figured out how I saw a move ahead of that actual move. I mean look at how the market did today (5/5/22)

NYCSB: "Yea, the next several days will be key in seeing which direction we choose. The support on GW's monthly 21sma is there at the moment. Time will tell" I don't know... whenever I see the 200 moving average above the 50 moving average I look for PUTS. This was the 5 and 8 chart. But when I look at the 21 I see a downward push of the 200 moving average. That sends me a signal or warning. I look at it like a 200 pound man stepping on a 50 pound man. That 200 pound man will win. That death cross happened on 4/25. Even though those candles yesterday went above the 200 moving average, the 200 moving average is still down. I remember a class I took from GW and he said "Look, just turn your candles off..." I watch those moving averages and when I settle on what chart I want to place my trade on I look around the room for confirmation on which direction I believe gives me proof. I need at least 3 charts that confirm my trade.

flsupreguy EXACTLY. We are in for a bumpy ride!

LOL,
Just the last two days has been hella bumpy. Last night I just excepted that I would be leaving the trade today with a loss. However, today was just crazy. I went from being at a $532 loss to a $200 gain. The market is just wild. One things for sure. The bulls and bears have really duked it out the last two days.

R

Short selling...[www.investopedia.com]

Yep there is plenty of that going on.

From what I see and have listen to- we are just getting started with this downtrend... folks say we have another 30-40% to go- I expect this to generally keep going down through the summer....

That's what I was thinking also.

The old phrase, "sell in May and go away" comes to mind.

yes- or if you are like us- get ready for a "put" heavy season.

Looking at the DOW weekly and monthly we are still in a down trend. Currently what I see is support on both these charts so tomorrow may be an up day. The daily shows oversold. Nasdaq shows oversold too on weekly and monthly. Market may need to digest. Put on your spurs!

Yep. I tried to exit my put trade position at the end of the day today but it didn't fill for me. Hopefully, there will be a gap down open and I can go ahead and exit. Currently I'm up just a touch over 100% on my trade.

Yep, market opened up. Get in, make a little and get out. Roller coaster in this market.

Looking at my weekly chart of the DOW may see an upward trend because we are oversold Stoch RSI. Take your extend line for charts and draw a line starting 12/16/18 on your Stoch RSI and you'll see we are in a turnaround area. Monthly chart also entering turnaround area but still a downward trend. Monthly chart looks like we'll hit support around 28,800. (50 moving average)