Category

Stocks

Category

Let’s jump right in. For me, everything starts at the TOP. I take a top-down approach to trading. And when I say “the TOP”, I mean market direction. Step 1: Is it a Bull or Bear Market? Listen, this is a very easy step to me. Look at a LONG-TERM chart of the S&P 500. Are prices moving UP from left to right? Or are they moving DOWN from left to right? It’s that simple. Stop trying to figure out why it’s going up or down. Don’t interject your own personal biases into it. Just look at the chart and answer the question: I have stripped out nearly all technical indicators. There’s no volume. There are no momentum indicators like the PPO, MACD, RSI, or Stochastic. There are no moving averages. This is nothing more than a 10-year weekly price chart of the S&P 500, NASDAQ 100, and the broader…