Pre-Open Commentary | Aug 6, 24

Condensed Insight Before the Bell.

Key takeways:

Market bounced off the vwap levels which were yesterday’s support and reduced dramatic decline a bit - this trade is rare but pays very well and it’s purely technical.

Now, personally I used this bounce to manage my “mistake” of adding to longterm bullish position a bit early. I basically traded it out and now I’m waiting for a propper confirmation of midterm TrendPhase change to bullish (as it’s still bearish). That also means I do not dismiss the idea of market getting lower. I still do not belive this is some kind of entry to recession or even a crash. I just want the market (mostly options market) to show me that its ok to go long in midterm again.

Look at midterm TrendPhase signals (with current rules) since its inception (green circles are signals to at least close short positions and enter 1/2 of size):

Intraday: