Back in the Saddle

After a month and a half of not seeing much in terms of a tradable market, I dusted off the buy button and bought a bit of AMD yesterday. So I’ll go through an overview of risks and opportunities.

Indexes

The market is gapping down a bit after it closed at the high of the day at the upper range of the consolidation area. — not entirely surprising given the strength of the rally and squeezing into the bell.

What interested me is the market undercut the prior lows but couldn’t push lower— it did the opposite— this suggests that sellers are running out and the balance of power was shifting to the bulls.

Now What?

This remains a touch-and-go market, there may be opportunities if yesterday’s move can consolidate or push higher but, if it rolls over I’m prepared to run for the exits.

Scenarios:

Gap down and keeps selling - I get stopped out and go back to cash

Gap down and bought up, and things get more interesting. Opportunities may start arising. Take them one at a time. Remain cautious and don’t get overexposed. I’m still approaching this market with the view that I may have to get back to cash.

Cheers.

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