It’s Monday and markets are tiny bit soft. It’s because we had too much, too soon last week.
That market ripped higher in a way I haven’t seen in a long time.
This coming week could be a tricky week.
The year as a whole, most experts have been wrong.
It’s time to be careful: Don’t jump on any stocks for a directional move.
The volatility and the way the market moved last week, kind of looks like what you would think of as a Bear Market Rally.
And for those that don’t trade it right, it could wreck them.
Let me explain what a Bear Market Rally is:
When the market has been bearish (as it has been since the July 31st peak), and the market kind of gets “tired” of going lower.
Then some nibbles turn into bites and a frenzy starts. And stocks go up through the level where people thought it could go.
So was this a Bear Market Rally?
If it is, we’ll see the market head lower this week. It’s a critical week to keep your eye out.
Trade well,
Jack Carter
PS> Notice that I warned against “directional trades”. You don’t want to get into that when there’s a possibility of a Bear Market Rally. But I’m still doing my income trades no matter what the market does. If you want to see what I’m up to this week, click here and put in your email address.