Well…if week 1 was unbelievably good, week 2 is its wicked sister.
A vicious rebound in both the US stock market and the USD Bitcoin price has seen my account get hammered in the past week, from a gain of 35% a week ago to a loss of 16%.
Having made the mistake of reversing my position to try and capture a potential squeeze I am now back with a small short position. I’m monitoring a triangle formation that I believe is drawing to a conclusion, the break from this formation will determine the medium term direction for this market but my bias at the moment is for a break to the downside (hence the small short position).
I’m following a Dow Theory sell signal in the US Markets. All three major indices (S&P, DJI, and DJT) are in primary downmoves. The rally last week doesn’t yet class as a secondary reactions (insufficient time and duration). For the time being we are happy to maintain our short position in the S&P.