|Fiscal Cliff Warning|
Here lies a fiscal cliff warning to the bears out there. Because right now there is alot of bearishness and these bears are celebrating the start of a market crash, due to the fiscal cliff deal that does not seem to be working out. Bears, before you go celebrating you need to be reminded of 7 things.
Fiscal Cliff Warning - 7 Things You Should Remember!
1) Below is a chart of the dow jones market breadth. As you can see we have rallied up since the middle of NOVEMBER! But there is still room to move up into the SELL ZONE area shown.
2) NEWS always seems to come out in the charts first, as I tell all my VIP subscribers.
The Nasdaq daily chart below is telling us, there will be some sort of good news coming out about the fiscal cliff. While everyone out there says we are going over the cliff, I do not pre-empt the market, I look and follow charts to the best of my ability. And the daily Nasdaq chart is telling us do not be super bearish here, that would be very dangerous.
3) Major news such as the fiscal cliff causes double negatives. In which govt will release bad news first, which normally gets factored into the market by traders, and the opposite will happen.
4) The word "FISCAL CLIFF" is not a word, it has now become a brand, and this will be part of the new tune they will sing to buy up more debt, and to make the average household suffer. It has nothing to do with the market. Infact it is totally dislocated away from the global markets all together.
5) There is a clear bearish tone right now. As sentiment trader always states, to make money on the market you should always oppose what the regular retails traders think and learn to become contrarians to them.
6) The market is so rigged, as I have participated at a professional level before and I know what goes on behind closed door. It is the reason I sit here talking to you on my blog. I know how evil the financial world is. I wanted to get out years ago, so I did. These professional traders know a billion times more than you, and already know what the outcome is to this fiscal cliff saga will be. They are just setting you up to be on the wrong side! I am not saying the bears are on the wrong side, but they know how to screw over the average trader and hide it, until the major news itself comes out. That is exactly what is happening right now. This is not just a feeling, this is what happens.
7) This is the most important! Never trade on news alone, or pre-emt the news. I have literally known dozens of traders who paid for high subscription services and thought they knew everything about news and were going to make a killing from getting news before everyone else. This does not work!
You need to realise, more traders accounts will get culled from this fiscal cliff news, because they are reading all the bearish signs, and going short the market, way before anything has happened. This is just moonlighting and can do alot of damage to your account. As always, read the charts, let them speak to you and react accordingly. Do not trade what you THINK, trade what you see and what the charts are telling you. News is not as important as PRICE AND PATTERNS.
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